The benefit is mostly designed for homeowners however the benefits does not cover any property that is in a sales transaction. If the work was done for a bank or broker to quickly fix up the place for a sale they cannot file a claim.
The contractor rarely gets a fair and unbiased investigation due to the fact that most surety investigators have never been on a construction project and are only trained in violations of the basic license laws and are not educated in defense laws the fact is they sit at a desk making crucial determinations without full knowledge of California Contractors laws.
On a new construction you only have a CSLB warranty, under the law the contractor must warranty his work for four years, foundation and structural is ten years, even if he goes out of the contracting biz however what if he files BK or passes you have nothing.
The bond also covers employees, sub contractors, and suppliers that the contractor fails to pay. Even if you paid the cprimary contractor if he fails to pay his workers, subs or suppliers, they have a legal right to place a mechanics lein on your property and force a sale to get paid.
My ad vice, look into some additional insurances or warranty plans.