If you own rental, commercial, or residential property in California and someone damages it, the California statute of limitations for property damage gives you three years to sue in most cases, but the real deadline depends on who caused the damage and what legal theory you use. A tenant who trashed a unit, a contractor who cracked a foundation, a neighbor whose tree crushed a wall, and a city water main that flooded a basement each run on a different clock. At Borna Houman Law, from our Santa Monica office at 2530 Wilshire Blvd, we represent landlords and property owners only, and the most expensive mistake we see is an owner who assumed three years and missed a six-month or one-year deadline that applied first.
Key Takeaway: A California property owner generally has three years from the date of damage to sue for injury to real or personal property under Code of Civil Procedure section 338. A written-lease claim against a tenant runs four years, a public entity requires a government claim within six months or one year, and most property insurance policies allow twelve months.
The rules below apply to owners as claimants: landlords recovering damage beyond a security deposit, owners suing contractors or neighbors, and investors whose buildings were harmed by a public agency.
Facing a deadline on a damage claim? The right theory can add a year to your window, and the wrong one can end the case before it starts. Call (888) 42-BORNA to schedule a confidential consultation. We represent owners and landlords only, and we will tell you which clock is running on your claim.
What is the statute of limitations for property damage in California?
The general statute of limitations for property damage in California is three years from the date the damage occurred. Code of Civil Procedure section 338 sets that three-year period for an action for trespass upon or injury to real property, under subdivision (b), and for taking, detaining, or injuring personal property, under subdivision (c).
That rule covers most of what owners call “property damage”: a tenant who punched holes in drywall, a delivery truck that hit a carport, a neighbor’s excavation that undermined a retaining wall, or a vandal who destroyed fixtures. If the defendant is a private person or company and the claim sounds in negligence or trespass, three years is the starting point. The Judicial Council’s self-help deadline table lists the same three-year period for damage to property.
Three years is only the default. Contract claims, construction defect claims, fraud claims, claims against government agencies, and claims under your own insurance policy all carry their own deadlines, and several of them are shorter.
How long does a landlord have to sue a tenant for damage beyond the security deposit?
A California landlord usually has four years to sue a former tenant for damage beyond the security deposit when the lease is in writing, because the claim is a breach of a written contract under Code of Civil Procedure section 337. The same facts usually also support a three-year tort claim for injury to real property under section 338(b), so the owner can plead both and rely on the longer one.
An oral rental agreement shortens the contract window to two years under Code of Civil Procedure section 339. That is one more reason every tenancy we handle runs on a written lease, even a month-to-month arrangement with a relative.
The deposit itself has a separate rule. A California landlord must return the deposit or send an itemized statement within 21 days after the tenant vacates, under Civil Code section 1950.5. Missing that 21-day step does not erase the owner’s damage claim, but it hands the tenant a counterclaim and, for bad-faith retention, a penalty of up to twice the deposit. Our security deposit return guide covers the itemization rules in detail.
When does the clock start on a property damage claim?
The statute of limitations on a property damage claim usually starts on the date the damage occurs, not the date the owner decides to sue. For a tenant claim, that is typically the date the owner regains possession and can inspect the unit, because that is when the damage becomes knowable.
California courts apply the delayed discovery rule when damage is hidden. Under that rule, the clock starts when the owner discovered, or reasonably should have discovered, both the damage and its likely cause. A slow leak behind a wall or soil movement from a neighbor’s grading can qualify. The owner carries the burden of proving that the damage could not reasonably have been found earlier, so dated inspection reports and repair invoices matter.
In our experience representing property owners, the discovery rule is argued far more often than it is won. Treat the date you first noticed anything wrong as the date the clock started, and work backward from there.
Is a continuing nuisance or trespass treated differently?
Yes. A continuing nuisance or trespass, one that can be stopped or abated, creates a new cause of action each day it continues, so the owner can recover damages for the three years before filing suit even if the condition began earlier. The California Supreme Court drew this line in Baker v. Burbank-Glendale-Pasadena Airport Authority (1985) 39 Cal.3d 862.
A permanent nuisance or trespass is different. When the intrusion is permanent, such as a neighbor’s structure built over the property line, the owner has one three-year period from the date the permanent condition was created, and all past and future damages must be recovered in that single action.
The label often decides the case. An encroaching wall, a drainage pipe discharging onto your lot, and a tree whose roots are lifting your driveway can each be argued either way, and the answer decides whether an older claim is still alive. Our guides to property line disputes and prescriptive easements cover the boundary side of these fights.
What deadlines apply to construction defects and contractor damage?
A claim for a patent, or visible, construction defect must be filed within four years after substantial completion of the work under Code of Civil Procedure section 337.1. A claim for a latent, or hidden, defect is subject to an outside limit of ten years after substantial completion under Code of Civil Procedure section 337.15.
The ten-year period is a ceiling, not a separate grant of time. The ordinary three- or four-year clock still runs from discovery, and the ten-year repose period cuts off even an undiscovered claim. An owner who discovers a defect in year eight therefore has, at most, two years left.
Damage a contractor causes while working, such as a crane that strikes a neighboring roof, is usually ordinary property damage under the three-year rule. Defective work under a written construction contract can also be pleaded as a four-year contract claim. Our construction defects practice handles owner-side claims against builders, subcontractors, and design professionals.
What if a city, county, or public agency damaged my property?
An owner cannot sue a California public entity for property damage until a written government claim has been presented, and that claim has a much shorter deadline than the lawsuit. Under Government Code section 911.2, a claim for injury to personal property must be presented within six months after the claim accrues, and a claim relating to any other cause of action, including damage to real property, must be presented within one year.
Most summaries miss that split. The six-month figure is correct for a damaged vehicle or equipment, but a building flooded by a broken city water main falls under the one-year claim period. In practice we file within six months whenever possible, because the line between real and personal property is not always clean and fixtures, inventory, and the structure itself are often damaged together.
After the entity rejects the claim in writing, the owner generally has six months from the date the rejection notice is deposited in the mail to file suit, under Government Code section 945.6. A separate track applies when public works physically damage private property and the owner sues for inverse condemnation under Article I, section 19 of the California Constitution; that action carries its own three-year period under section 338(j).
Does my homeowner’s or landlord insurance policy have its own deadline?
Yes, and it is usually the shortest deadline an owner faces. A California property insurance policy that follows the standard fire policy form requires any lawsuit against the insurer to be commenced within twelve months after the inception of the loss, under Insurance Code section 2071.
The California Supreme Court held in Prudential-LMI Commercial Insurance v. Superior Court (1990) 51 Cal.3d 674 that this twelve-month period is equitably tolled from the date the insured gives notice of the loss until the insurer formally denies the claim. Tolling does not restart the clock, and the months between the loss and your first notice to the carrier still count.
This deadline governs your suit against your own insurer. It does not shorten your three-year claim against the person who caused the damage, and an insurer that pays your loss may later bring that claim in your name through subrogation.
California property damage deadlines at a glance
The table below collects the deadlines property owners most often face. Each runs from the trigger listed, subject to the discovery and tolling rules discussed above.
| Type of claim | Deadline | Statute | Typical owner scenario |
|---|---|---|---|
| Injury to real property (negligence, trespass) | 3 years | CCP 338(b) | Neighbor’s excavation cracks a foundation |
| Injury to personal property | 3 years | CCP 338(c) | Tenant destroys owner-supplied appliances |
| Breach of written lease | 4 years | CCP 337 | Damage beyond the deposit after move-out |
| Breach of oral agreement | 2 years | CCP 339 | Informal rental with no written lease |
| Patent construction defect | 4 years from substantial completion | CCP 337.1 | Visibly defective stairs or drainage |
| Latent construction defect | 10-year outside limit | CCP 337.15 | Hidden waterproofing failure |
| Government claim, personal property | 6 months to present claim | Gov. Code 911.2 | City vehicle damages owner’s equipment |
| Government claim, real property | 1 year to present claim | Gov. Code 911.2 | Water main break floods a building |
| Suit against own property insurer | 12 months, tolled during claim | Ins. Code 2071 | Insurer underpays a fire or water loss |
What should an owner do now to protect the claim?
Write down the date of the damage and the date you first learned of it, then calendar the shortest deadline that could apply. If a public entity might be involved, calendar six months from the date of damage, even if a one-year claim period may turn out to govern.
Next, preserve the evidence. Photograph and video the damage with date stamps, keep the move-out inspection and the move-in checklist, save every repair estimate and invoice, and send a written preservation demand to the responsible party. For tenant damage, keep the itemized deposit statement and the receipts that support it.
Finally, do not let negotiation run the clock. Settlement talks with a tenant, a contractor, or an adjuster do not pause the statute of limitations unless the parties sign a written tolling agreement. In our experience, a short tolling agreement is the cleanest way to keep talking without losing leverage, and most well-advised defendants will sign one. Our real estate litigation practice drafts these agreements and files when talks stall.
Worked example: one flood, four clocks
Consider an owner of a fourplex in Santa Monica. On March 1, a city water main breaks and floods the ground-floor units. On March 3, the owner reports the loss to the property insurer. On September 1, the insurer denies part of the claim. In December, the owner learns that a tenant’s unpermitted washer hookup made the damage worse.
The owner’s personal-property claim against the city (damaged appliances and furniture the owner supplied) must be presented by September 1, six months after the break. The real-property claim against the city, for the building itself, must be presented by the following March 1. The suit against the insurer has twelve months, tolled from March 3 to September 1, so the two days before notice count and the remaining time runs from the denial, ending in late August of the following year. The claim against the tenant runs four years on the written lease, or three years in tort, from March 1.
One flood produced four deadlines, and the first expires in six months. We calendar every theory on day one for that reason.
Frequently asked questions
What is the 5 year statute of limitations in California?
California has no general five-year statute of limitations for property damage. The five-year figure people see usually refers to Code of Civil Procedure section 583.310, which requires a case that has already been filed to be brought to trial within five years. It does not extend the time to file a property damage claim.
How much can I sue for property damage in California?
There is no cap on property damage recovery in a California civil action. An individual can sue for up to $12,500 in small claims court, and a business entity for up to $6,250. Limited civil cases cover claims up to $35,000, and unlimited civil cases cover anything larger.
What qualifies as property damage under California law?
Property damage means physical injury to real property, such as land and buildings, or to personal property, such as appliances, vehicles, and furnishings. Loss of use and the reasonable cost of repair are usually recoverable. Diminution in value can be recovered when repair is not reasonable.
Does an insurance claim stop the statute of limitations against the person who caused the damage?
No. Filing a claim with your own insurer or the other party’s insurer does not pause the three-year statute of limitations against the person who caused the damage. Only a lawsuit or a signed tolling agreement protects that claim.
Can a landlord sue a tenant after keeping the security deposit?
Yes. A California landlord can keep the deposit for damage beyond ordinary wear and tear and sue for the balance, as long as the itemized statement went out within 21 days. The lawsuit must be filed within four years on a written lease.
What happens if I miss the deadline?
The defendant can raise the statute of limitations as a complete defense, and the court will dismiss the claim. California courts rarely excuse a late filing on property damage claims, so an owner should treat every deadline as fixed.
Talk to a property owner’s attorney about your deadline
Borna Houman Law represents landlords, investors, and property owners across Los Angeles County in damage claims against tenants, contractors, neighbors, insurers, and public agencies. We identify every theory, calendar the shortest deadline, and file before it runs. Call (888) 42-BORNA to schedule a confidential consultation.
By Borna Houman, Attorney at Borna Houman Law, CA Bar #352339. Office: 2530 Wilshire Blvd, Santa Monica, CA.
Disclaimer: This article provides general information about California law for property owners and is not legal advice. Reading it does not create an attorney-client relationship. Deadlines depend on specific facts, so consult a licensed California attorney about your situation.
