Residential Roofing Deposit Payment Regulations by State

Introduction

This article summarizes the rules and regulations that govern the amount of money a roofing contractor can ask for or require as a deposit or down payment for residential roofing projects. This article is not legal advice; verify all information presented here with your state regulator or an attorney. In this guide, “deposit” and “down payment” mean any payment collected before work begins. The rules differ significantly from state to state, and local jurisdictions may add their own limits, licensing conditions, escrow requirements, or contract disclosure requirements. Always check with your city or county permitting office or local licensing authority, especially in states with no explicit statewide cap on down payments.

What counts as a “down payment”

Any money you pay before the work starts, sometimes called a deposit, an advance, or a mobilization fee. Many states also regulate progress payments that come due after work begins; those rules can affect how much you should pay first.

How Residential Roofing Work is Regulated

Residential roofing is overseen by a mix of state and local rules. The goal is to protect homeowners and ensure work is done safely, to code, and by qualified contractors. Here is how the system typically works and what “regulator” means in this guide.

Who the regulators are:

• State licensing or registration agency – For example, a contractors board, a department of labor and industry, or a professional licensing division. They set entry rules for contractors, require insurance or bonds, and enforce contractor laws.
• Attorney General’s consumer protection unit – Polices deceptive practices, takes complaints, and can sue or fine bad actors.
• Local building department – City or county office that issues permits, checks plans, and performs inspections for code compliance.
• Occasional specialty boards – In some states, roofing has its own registration or endorsement in addition to or in place of a general contractor or home improvement license.

What regulators typically do:

• License or register contractors – Verify qualifications, insurance, bonding, and business status; suspend or revoke when needed.
• Set contract rules – Some states cap deposits or require specific payment schedules and disclosures.
• Publish online lookups and guidance – License lookups, consumer checklists, sample contracts, and scam alerts.
• Handle complaints and discipline – Investigate, cite, fine, or refer for prosecution; some states run recovery funds or require surety bonds.
• Coordinate inspections – Local inspectors verify that work meets building code and manufacturer installation standards tied to the code.

What regulators usually do not do:

• Serve as your private attorney or guarantee payment recovery.
• Resolve every contract dispute when no law or rule was broken – small-claims court or mediation may still be needed.
• Approve workmanship quality beyond code-minimum unless a law or contract term is violated.

How the rules fit together:

• State law – May set deposit caps, insurance-claim cancellation rights, or required contract terms.
• Local code and permits – Your city or county enforces the building code, requires permits, and does inspections.
• Consumer protection laws – Ban deceptive practices and require “cooling-off” rights for certain in-home sales.
• Lien laws – Control who can place a lien on your home and what releases you should collect with each payment.
• Insurance rules – Many states forbid contractors from “waiving” or rebating deductibles; storm repairs often include special cancellation rights.

When to contact a regulator:

• Before hiring – Verify the license or registration and check for complaints or discipline.
• Before paying a deposit – Ask whether your state limits deposits, requires escrow for advances, or mandates special contract language.
• If problems arise – Work without permits, requests for unusually large upfront payments, missed milestones, or refusal to provide lien waivers.

How to find your regulator:

• Search online for “<Your State> contractor license lookup” for the state licensing site, then verify the contractor’s license status and discipline history. See my article How to Check a Roofing Contractor’s License Online.
• Visit your city or county’s “building permits” page to confirm permit and inspection requirements.
• If you are unsure which office applies, call your state Attorney General’s consumer hotline and ask to be routed to the right agency.

What to Do Before Paying a Deposit

To protect yourself, take these steps before you hand over any money to a contractor:

• Verify the contractor’s credentials – Confirm the roofing contractor’s contractor license, business registration, and insurance. Use your state contractor board’s online license lookup and call the insurer to confirm active general liability and workers’ comp. Save screenshots or PDFs of the lookups.
• Check complaint and discipline history – Search for the contractor on the regulator’s website, your state Attorney General, and local court records. Ask the contractor for three recent homeowner references and call them.
• Get a detailed written contract – The agreement should list scope of work, exact materials and brands, warranty terms, permit responsibility, start and completion targets, cleanup and disposal, and a clear progress payment schedule tied to milestones.
• Tie payments to verifiable milestones – For example: permit issued; delivery of specified shingles and underlayment; tear-off complete; dry-in inspection; final inspection. Require lien waivers with each payment.
• Avoid large upfront payments – Pay only what is needed for non-returnable, special-order materials or permit fees. In states with caps, follow the cap. Otherwise, keep the initial payment modest and documented.
• Do not pay in cash – Use check or credit card for a paper trail. If you use ACH, confirm the payee name matches the licensed entity exactly.
• Confirm permits and inspections – Require proof that permits are pulled in the correct name. Put who is responsible for scheduling inspections into the contract.
• Protect your deposit – Where available, ask for escrow, a payment bond, or use a joint check to the supplier for special-order materials. Get delivery receipts.
• Get proof of materials – Have the contractor list make, model, color, and quantities. Request supplier quotes or order confirmations before paying for special orders.
• Plan for weather and changes to the scope of work – Include a written change order process and how weather delays affect the timeline and payments.
• Know your cancellation rights – Some states give a short right to cancel certain in-home sales, and many insurance-contingent roofing contracts allow cancellation if the claim is denied. Make sure the contract states how refunds are handled.
• Verify site safety and access – Confirm how property will be protected – landscaping, gutters, attic, and driveway – and where materials and dumpsters will be placed.
• Keep records – Save the contract, license proof, insurance certificates, permit, inspection results, delivery tickets, lien waivers, and all payment receipts.

Checklist before you pay any deposit:

1. License and insurance verified
2. Detailed written contract signed
3. Permit plan confirmed
4. Payment schedule tied to milestones
5. Lien waivers required with each payment
6. No cash payments
7. Materials and warranties documented
8. Cancellation and refund terms understood.

Contractor Red Flags

• A demand for a large deposit without a specific materials or permitting need.
• A pressure pitch to “sign today” to get a discount.
• A refusal to provide a written schedule of progress payments.
• Requests to make checks payable to an individual rather than the licensed company.

For more help, see my article How to Screen and Choose a Roofer: Qualifications Checklist.

Alabama

Rule summary: No explicit statewide cap for residential roofing deposits. Upfront payments are governed by general contract and consumer fraud law. In practice, homeowners and contractors negotiate a reasonable initial payment tied to materials or permitting.
Statute or rule: No Alabama statute sets a numerical cap on deposits for home improvement. Written contracts are required by best practice, and licensed home builders are regulated for qualifying projects.
Regulator: Alabama Home Builders Licensure Board – https://hblb.alabama.gov
Notes and exceptions: Alabama’s Door-to-Door Sales Act provides a 3-business-day cancellation right for certain in-home sales with a refund of any deposit; check your contract for the notice. For large projects, verify license status and avoid paying far in advance of work or materials.
Last verified: 2025-10-13
Source links: https://law.justia.com/codes/alabama/title-8/chapter-19/, https://hblb.alabama.gov

Alaska

Rule summary: No specific statewide cap on deposits for residential roofing or home improvement. Deposits are a matter of contract, but Alaska emphasizes licensing, bonding and disclosures that protect consumers.
Statute or rule: Alaska Stat. ch. 08.18 requires contractor registration, bonding and insurance, and a written contract for covered work. The law does not set a maximum deposit.
Regulator: Division of Corporations, Business and Professional Licensing – https://www.commerce.alaska.gov/web/cbpl
Notes and exceptions: The state encourages limiting upfront payments to documented costs such as permit fees or nonreturnable special-order materials. A 3-day cancellation right may apply to certain home solicitation sales.
Last verified: 2025-10-13
Source links: https://www.commerce.alaska.gov/web/cbpl/ProfessionalLicensing/ConstructionContractors.aspx, https://www.akleg.gov/basis/statutes.asp#08.18

Arizona

Rule summary: Arizona does limit down payments on residential construction contracts. By law, a home improvement contract’s initial payment cannot exceed 50 percent of the total contract price, which prevents homeowners from paying more than half up front. Remaining payments should be tied to progress or materials delivered.
Statute or rule: Ariz. Rev. Stat. § 32-1158.02 – “The down payment section … shall not require more than fifty per cent of the total contract price.”
Regulator: Arizona Registrar of Contractors – https://roc.az.gov
Notes and exceptions: The 50 percent cap applies to contracts under the Registrar’s jurisdiction. Written contracts are required above statutory thresholds and must contain a dedicated Down Payment section and a clear payment schedule. Door-to-door transactions carry a 3-business-day cancellation right.
Last verified: 2025-10-13
Source links: https://www.azleg.gov/ars/32/01158-02.htm, https://roc.az.gov/before-hire

Arkansas

Rule summary: No explicit statewide cap on deposits. Arkansas focuses on contractor licensing and written-contract requirements. Homeowners should limit the initial payment to a portion that matches early costs rather than a large lump sum.
Statute or rule: Ark. Code § 17-25-514 requires written home improvement contracts above the threshold but does not set a maximum deposit.
Regulator: Arkansas Contractors Licensing Board – https://labor.arkansas.gov/licensing/arkansas-contractors-licensing-board/
Notes and exceptions: For in-home solicitations, a 3-day cancellation right may apply. Use a milestone-based payment schedule and avoid paying for work far in advance.
Last verified: 2025-10-13
Source links: https://labor.arkansas.gov/licensing/arkansas-contractors-licensing-board/, https://www.arkleg.state.ar.us/ArkansasLaw

California

Rule summary: California strictly caps the initial down payment for home improvement, including roofing: no more than 1,000 dollars or 10 percent of the total contract price, whichever is less. Later payments must correspond to the value of work performed or materials furnished.
Statute or rule: Cal. Bus. and Prof. Code § 7159(d)(8) – “The down payment may not exceed 1,000 dollars or 10 percent of the contract price, whichever is less.”
Regulator: California Contractors State License Board – https://www.cslb.ca.gov
Notes and exceptions: California does not allow a larger initial deposit for special-order materials. Contracts must include a schedule of progress payments, mechanic’s lien warnings, and a 3-day cancellation notice for qualifying home solicitation sales.
Last verified: 2025-10-13
Source links: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=7159., https://www.cslb.ca.gov/Consumers/Hire_A_Contractor/Home_Improvement_Contracts/What_Is_A_Contract.aspx

Colorado

Rule summary: No statutory cap on deposit amounts. Colorado’s construction trust fund law requires contractors to hold owner payments in trust for the project, which deters misuse of deposits.
Statute or rule: Colo. Rev. Stat. § 38-22-127 – owner payments received by a contractor are trust funds for the project.
Regulator: Colorado Department of Regulatory Agencies – https://dora.colorado.gov
Notes and exceptions: Misapplication of funds can lead to civil and criminal penalties. For at-home solicitations, a 3-day cancellation right generally applies. Consider tying the first payment to permits and nonreturnable materials.
Last verified: 2025-10-13
Source links: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-38.pdf, https://coag.gov

Connecticut

Rule summary: No statutory cap on deposit amounts, but strong procedural protections. Contractors must register and use a written Home Improvement contract that includes start and completion dates, the total price, and a 3-day cancellation notice. Payment schedule must be stated.
Statute or rule: Conn. Gen. Stat. § 20-418 et seq. – Home Improvement Act requires contract content and cooling-off rights; it does not fix a maximum deposit.
Regulator: Connecticut Department of Consumer Protection – https://portal.ct.gov/DCP
Notes and exceptions: The Unfair Trade Practices Act prohibits unconscionable advance payments or misrepresentations. Avoid paying for more than permits and special-order materials until work begins.
Last verified: 2025-10-13
Source links: https://www.cga.ct.gov/current/pub/chap_400.htm, https://portal.ct.gov/dcp/trade-practices-division/home-improvement-for-consumers

Delaware

Rule summary: No statutory cap on down payment amounts. Delaware’s Home Solicitation Sales Act gives a 3-business-day right to cancel certain in-home agreements with a refund of deposits, but it does not set a deposit percentage.
Statute or rule: 6 Del. C. ch. 44 – Home Solicitation Sales Act requires specific notices and a cooling-off right; no cap on initial deposits.
Regulator: Delaware Department of Justice – Consumer Protection Unit – https://attorneygeneral.delaware.gov/fraud/cpu/
Notes and exceptions: After storms, Delaware warns against contractors who offer to absorb insurance deductibles. Tie early payments to permits and documented materials. Legislation watch: In 2024 and 2025, the General Assembly considered bills that would have created a statewide deposit cap for home improvement contracts, including roofing, for example a proposed 10 percent limit with a special-order materials allowance. As of 2025-10-13, no cap is enacted. See bill pages for status: HS 1 for HB 427 (2024), HB 57 (2025).
Last verified: 2025-10-13
Source links: https://delcode.delaware.gov/title6/c044/, https://regulations.delaware.gov/AdminCode/title6/106

District of Columbia

Rule summary: No statutory cap on down payment amounts. DC requires a written contract for home improvement work over 300 dollars that sets out the terms of payment. A 3-day cancellation right applies to certain home solicitation sales.
Statute or rule: 16 DCMR § 808 (Home Improvement) requires written contract terms; D.C. Code § 28-3811 provides cooling-off rights.
Regulator: DC Department of Licensing and Consumer Protection – https://dlcp.dc.gov
Notes and exceptions: Licensing and bonding are required for home improvement contractors. To reduce risk, schedule the first payment for permit fees or nonreturnable materials and keep progress draws aligned with completed work.
Last verified: 2025-10-13
Source links: https://code.dccouncil.gov/us/dc/council/code/sections/28-3811, https://dlcp.dc.gov/

Florida

Rule summary: No statutory cap on down payment amounts. However, if a contractor takes more than 10 percent up front on a residential job, they must apply for the necessary permits within 30 days and begin the work within 90 days after permit issuance, unless there is just cause. These timelines protect homeowners when large advances are requested.
Statute or rule: Fla. Stat. § 489.126(2) – timing obligations trigger when the initial payment exceeds 10 percent of the contract price.
Regulator: Florida Department of Business and Professional Regulation – https://www2.myfloridalicense.com/
Notes and exceptions: Violations may carry criminal penalties. Work start deadlines can be extended for listed reasons such as lack of owner financing, change orders, or act of God.
Last verified: 2025-10-13
Source links: https://www.flsenate.gov/Laws/Statutes/2025/489.126, https://www2.myfloridalicense.com/

Georgia

Rule summary: No statutory cap on down payment amounts. Deposits are contractual. Georgia’s consumer laws prohibit unfair and deceptive practices, and state guidance encourages modest upfront payments aligned with materials or permits.
Statute or rule: O.C.G.A. § 10-1-393 (Fair Business Practices Act) – no deposit cap; deceptive practices prohibited.
Regulator: Georgia State Licensing Board for Residential and General Contractors – https://sos.ga.gov
Notes and exceptions: After severe weather, insurance-contingent roofing jobs should specify refund terms if claims are denied. Use staged payments and obtain lien waivers with each draw.
Last verified: 2025-10-13
Source links: https://consumer.georgia.gov/consumer-topics/home-repair-improvements, https://sos.ga.gov

Hawaii

Rule summary: No statutory cap on down payment amounts. Hawaii requires specific disclosures, including lien information, and expects written contracts to state the down payment and payment terms.
Statute or rule: Haw. Rev. Stat. § 444-25.5 and Hawaii Admin. Rules ch. 16-77 – contract content and lien notice; no percentage limit.
Regulator: Contractors License Board, Department of Commerce and Consumer Affairs – https://cca.hawaii.gov/pvl/
Notes and exceptions: Many Hawaii contractors limit deposits to cover special-order materials or mobilization. A 3-day cancellation right generally applies to door-to-door sales.
Last verified: 2025-10-13
Source links: https://cca.hawaii.gov/pvl/faqs/, https://cca.hawaii.gov/rico/files/2019/08/CLB-190718-Consumer-Construction-Contracts.pdf

Idaho

Rule summary: No statutory cap on down payment amounts. Idaho requires a written contract that discloses the amount of any down payment and other key terms.
Statute or rule: Idaho Code § 54-5215 – contractor must give the owner a written disclosure including “the amount of any down payment.”
Regulator: Idaho Division of Occupational and Professional Licenses – https://dopl.idaho.gov/
Notes and exceptions: Consider limiting deposits to actual nonreturnable materials or permit fees. A 3-day cancellation right can apply to certain home solicitation transactions.
Last verified: 2025-10-13
Source links: https://legislature.idaho.gov/statutesrules/idstat/Title54/T54CH52/SECT54-5215/, https://www.ag.idaho.gov/consumer-protection/

Illinois

Rule summary: No statutory cap on down payment amounts. Illinois requires a written contract and consumer rights brochure for most home repair or remodeling jobs. If the contractor misses start or completion dates stated in the contract, the homeowner can demand a refund of any down payment.
Statute or rule: Home Repair and Remodeling Act, 815 ILCS 513 – contract and brochure; no deposit limit.
Regulator: Illinois Attorney General – Consumer Protection – https://illinoisattorneygeneral.gov/consumers
Notes and exceptions: Insurance-related repairs often include special cancellation rights. To reduce risk, schedule draws to completed milestones and request lien waivers.
Last verified: 2025-10-13
Source links: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2123, https://illinoisattorneygeneral.gov/consumers/homerepair_construction.html

Indiana

Rule summary: No statutory cap on down payment amounts. Indiana’s Home Improvement Contracts Act focuses on having a complete, signed contract before work starts, stating price, payment terms, and timing.
Statute or rule: Ind. Code § 24-5-11 – sets required contract content; does not impose a maximum deposit.
Regulator: Indiana Attorney General – Homeowner Protection Unit – https://www.in.gov/attorneygeneral/
Notes and exceptions: Door-to-door transactions include a 3-day cancellation right. Indiana restricts waiving or rebating insurance deductibles on storm-related repairs.
Last verified: 2025-10-13
Source links: https://iga.in.gov/legislative/laws/2024/ic/titles/24#24-5-11, https://www.in.gov/attorneygeneral/consumer-protection-division/home-improvement-scams/

Iowa

Rule summary: No statewide statutory cap on down payment amounts. For roofing or exterior repair contracts linked to insurance proceeds, the owner may cancel if the claim is denied and is entitled to a refund of any deposit.
Statute or rule: Iowa Code § 714E.2 – roofing insurance-denial cancellation and refund; no general deposit limit.
Regulator: Iowa Division of Labor – Contractor Registration – https://dial.iowa.gov/
Notes and exceptions: Standard 3-day home solicitation cancellation rights can apply. Keep the initial payment tied to permits or nonreturnable materials until work begins.
Last verified: 2025-10-13
Source links: https://www.legis.iowa.gov/docs/code/714E.2.pdf, https://www.iowaattorneygeneral.gov/for-consumers/general-consumer-information/home-repairs

Kansas

Rule summary: No statutory cap on down payment amounts. Kansas requires roofing contractors to register and to include insurance-contingency cancellation language; if a claim is denied, the homeowner can cancel and receive a refund of any deposit.
Statute or rule: Roofing Registration Act, K.S.A. 50-6,122 et seq. – registration and contract content; no deposit cap.
Regulator: Kansas Attorney General – https://www.ag.ks.gov/
Notes and exceptions: Always verify registration status and ensure the contract states payment schedule and refund terms for insurance denials.
Last verified: 2025-10-13
Source links: https://ag.ks.gov/docs/default-source/consumer-documents/roofing-registration-act.pdf

Kentucky

Rule summary: No statutory cap on deposit amounts. Deposits are governed by contract, while Kentucky’s consumer protection law prohibits unfair or deceptive acts.
Statute or rule: KRS 367.170 – unfair, false or misleading acts prohibited; no deposit limit for home improvements.
Regulator: Kentucky Office of the Attorney General – https://www.ag.ky.gov/Pages/default.aspx
Notes and exceptions: A 3-day cancellation right applies to qualifying door-to-door sales. Theft by deception statutes can apply if money is taken and work is not performed.
Last verified: 2025-10-13
Source links: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=20313, https://www.ag.ky.gov/consumer-protection/consumer-tips/home-improvement-scams

Louisiana

Rule summary: No statutory cap on deposit amounts. Louisiana targets misuse of owner funds, making misapplication of payments under a residential contract a crime.
Statute or rule: La. R.S. 14:202.1 – Residential Contractor Fraud.
Regulator: Louisiana State Licensing Board for Contractors – https://lslbc.gov/
Notes and exceptions: After disasters, officials advise homeowners to keep upfront payments small and milestone-based. Obtain lien waivers and proof of insurance with each draw.
Last verified: 2025-10-13
Source links: https://legis.la.gov/Legis/Law.aspx?d=780187, https://www.lslbc.louisiana.gov

Maine

Rule summary: Maine caps the initial down payment at no more than one-third of the total contract price for covered home construction or repair contracts over 3,000 dollars, unless the owner signs a written waiver. (You may want to think twice about hiring any contractor who asks you to sign that waiver.)
Statute or rule: 10 M.R.S. § 1487(5) – initial down payment limited to one-third unless waived in writing.
Regulator: Maine Office of the Attorney General – https://www.maine.gov/ag/
Notes and exceptions: Parties may agree in writing to exceed one-third. Contracts must meet statutory content rules and include timing for performance.
Last verified: 2025-10-13
Source links: https://legislature.maine.gov/statutes/10/title10sec1487.html, https://www.maine.gov/ag/consumer/home_construction_contracts.shtml

Maryland

Rule summary: Maryland limits the deposit to no more than one-third of the home improvement contract price at or before execution, and prohibits any payment before a written contract is signed.
Statute or rule: Md. Code, Business Regulation § 8-617 – “may not receive a deposit of more than one-third” and “may not accept any payment before a written contract … is signed.”
Regulator: Maryland Home Improvement Commission – https://labor.maryland.gov/license/mhic/
Notes and exceptions: No general exceptions. Include the 3-day cooling-off notice where applicable. Maryland requires specific contract disclosures and licensing.
Last verified: 2025-10-13
Source links: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gbr&section=8-617

Massachusetts

Rule summary: Massachusetts caps the down payment for home improvement at one-third of the total price, unless special-order or custom materials are required. In that case, the deposit can be the greater of one-third or the actual cost of those special-order materials.
Statute or rule: M.G.L. c. 142A, § 2(a)(6) – one-third cap with special-order materials exception.
Regulator: Office of Consumer Affairs and Business Regulation – https://www.mass.gov/home-improvement-contractor-registration-and-renewal
Notes and exceptions: Contractors must register, use a compliant contract, and include the 3-day cancellation notice for qualifying transactions. Keep progress payments aligned with performed work and delivered materials.
Last verified: 2025-10-13
Source links: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXX/Chapter142A/Section2

Michigan

Rule summary: No statutory cap on deposit amounts. Michigan treats money paid to contractors as trust funds for the benefit of the project and those supplying labor or materials, which deters misuse of deposits. Homeowners should tie the initial payment to permits or nonreturnable materials, then tie payments to work progress milestones.
Statute or rule: Mich. Comp. Laws § 570.151 et seq. Building Contract Fund Act, payments received by a contractor are trust funds that must be used for the project.
Regulator: Michigan Department of Licensing and Regulatory Affairs – https://www.michigan.gov/lara
Notes and exceptions: No numeric cap. Misappropriation can be a felony. Three day cooling off may apply to home solicitation sales. Ask for lien waivers with each draw.
Last verified: 2025-10-13
Source links: https://www.legislature.mi.gov/mileg.aspx?page=getobject&objectName=mcl-570-151, https://www.michigan.gov/ag/consumer-protection/consumer-alerts/consumer-alert-contractor-fraud

Minnesota

Rule summary: No statewide percentage cap on deposits. For roofing or siding contracts paid from insurance proceeds, the owner may cancel within 72 hours after the insurer’s denial and is entitled to a refund of any deposit. Many contractors use progress draws tied to work performed.
Statute or rule: Minn. Stat. § 326B.811, insurance loss contracts must include the cancellation and refund rights.
Regulator: Minnesota Department of Labor and Industry – https://www.dli.mn.gov/
Notes and exceptions: Standard three day home solicitation cancellation may also apply. Require a payment schedule and lien notices where applicable.
Last verified: 2025-10-13
Source links: https://www.revisor.mn.gov/statutes/cite/326B.811, https://www.dli.mn.gov/workers/homeowners/home-improvement

Mississippi

Rule summary: No explicit statewide percentage cap on deposits for non-insurance residential work. For insurance-funded residential roof system repairs, a contractor may not require any payment from the insured homeowner until the three-business-day cancellation grace period has expired. Homeowners should receive a refund of any payments within ten business days after a timely cancellation, with an allowance for emergency services already performed.
Statute or rule: Miss. Code Ann. § 75-24-307(2)(a) as amended by HB 1408, effective July 1, 2024; refund timing at § 75-24-309(4).
Regulator: Mississippi Attorney General – Consumer Protection – https://attorneygenerallynnfitch.com/divisions/consumer-protection/; Mississippi State Board of Contractors – licensing – https://www.msboc.us/
Notes and exceptions: The “Insurance Benefits Roofing Repair Consumer Protection Act” applies only when payment may be made from the proceeds of a property and casualty insurance policy. Non-insurance roofing contracts remain by agreement with no numeric deposit cap. If you cancel under the statute, the contractor must refund payments within 10 business days except for emergency services and insurer-approved work already performed.
Last verified: 2025-10-13
Source links: https://www.msboc.us/consumer-resources/, Mississippi HB 1408, § 75-24-309 – Refunds after cancellation

Missouri

Rule summary: No statutory cap on deposit amounts. Roofing contracts contingent on insurance must allow the homeowner to cancel and receive a refund if the claim is denied. Homeowners should only pay modest amounts up front and then partial progress payments as the work is completed.
Statute or rule: Mo. Rev. Stat. § 407.725, insurance contingency cancellation and refund. No deposit cap.
Regulator: Missouri Attorney General – https://ago.mo.gov/
Notes and exceptions: Use a progress schedule and request lien waivers. The AG warns against paying large sums before work begins.
Last verified: 2025-10-13
Source links: https://revisor.mo.gov/main/OneSection.aspx?section=407.725, https://ago.mo.gov/docs/default-source/publications/home-repair-law.pdf

Montana

Rule summary: No statutory cap on deposit amounts. Contractor registration and contract disclosures protect homeowners, and Montana’s consumer laws prohibit unfair practices. Homeowners should limit the first payment to documented costs, then pay as work progresses.
Statute or rule: Contractor Registration program and Home Solicitation Sales Act require disclosures and provide a three day cancellation right, but do not cap deposits.
Regulator: Montana Department of Labor and Industry – https://erd.dli.mt.gov/
Notes and exceptions: Consider escrow for large special order materials. Get written change orders and lien waivers.
Last verified: 2025-10-13
Source links: https://dojmt.gov/consumer/consumer-laws/, https://erd.dli.mt.gov

Nebraska

Rule summary: No statutory cap on deposit amounts. Roofing contracts connected to insurance proceeds must include a right to cancel and obtain a refund if the claim is denied.
Statute or rule: Neb. Rev. Stat. § 44-8604, roofing insurance contingency cancellation and refund. No general deposit limit.
Regulator: Nebraska Attorney General – https://protectthegoodlife.nebraska.gov
Notes and exceptions: Three day home solicitation cancellation may apply. Align draws with work stages and materials delivered.
Last verified: 2025-10-13
Source links: https://nebraskalegislature.gov/laws/statutes.php?statute=44-8604, https://ago.nebraska.gov/sites/ago.nebraska.gov/files/doc/Scams%20Targeting%20Homeowners.pdf

Nevada

Rule summary: Nevada caps any initial down payment or deposit for residential improvement at 1,000 dollars or 10 percent of the total contract price, whichever is less. This applies to roofing and other residential work and is collected before the start of construction.
Statute or rule: Nev. Rev. Stat. § 624.940(2)(g), initial down payment or deposit not to exceed 1,000 dollars or 10 percent of the aggregate contract price, whichever is less.
Regulator: Nevada State Contractors Board – https://www.nvcontractorsboard.com/
Notes and exceptions: No general special materials exception. Standard three day home solicitation cooling off may apply.
Last verified: 2025-10-13
Source links: https://www.leg.state.nv.us/NRS/NRS-624.html#NRS624Sec940

New Hampshire

Rule summary: No statutory cap on deposit amounts. Deposits are negotiated. New Hampshire consumer protection law and the home solicitation statute provide remedies and a three business day cancellation right for certain in home sales.
Statute or rule: RSA 358-D, Home Solicitation Sales, and RSA 358-A, Consumer Protection. No numeric deposit cap.
Regulator: New Hampshire Consumer Protection and Antitrust Bureau – https://www.doj.nh.gov/citizens/consumer-protection-antitrust-bureau
Notes and exceptions: Keep the initial payment tied to permits and nonreturnable materials until work begins.
Last verified: 2025-10-13
Source links: https://www.doj.nh.gov/consumer/sourcebook/home-improvement.htm

New Jersey

Rule summary: No statutory cap on deposit amounts. Home improvement jobs over 500 dollars require a detailed written contract that includes total price and the payment schedule. Contractors may not demand final payment before a job is completed. Enforcement is through consumer protection rules rather than a fixed cap.
Statute or rule: N.J.A.C. 13:45A-16.2, contract content requirements. No deposit limit.
Regulator: New Jersey Division of Consumer Affairs – https://www.njconsumeraffairs.gov/HIC
Notes and exceptions: Three day cancellation right for contracts signed at the home. Verify registration of home improvement contractors.
Last verified: 2025-10-13
Source links: https://www.njconsumeraffairs.gov/Statutes/home-improvement-regulations.pdf

New Mexico

Rule summary: No statutory cap on deposit amounts. New Mexico relies on licensing under the Construction Industries Licensing Act and the Unfair Practices Act to police payment conduct. Homeowners should keep initial payments modest and linked to materials or permits.
Statute or rule: Construction Industries Licensing Act and Unfair Practices Act, no numeric deposit cap.
Regulator: New Mexico Regulation and Licensing Department, Construction Industries Division – https://www.rld.nm.gov/construction-industries/
Notes and exceptions: Three day home solicitation cancellation can apply. Anti rebate rules for insurance deductibles may apply to storm repairs.
Last verified: 2025-10-13
Source links: https://www.rld.nm.gov/construction-industries, https://www.nmag.gov/consumer/publications/

New York

Rule summary: No statutory cap on deposit amounts, but strong protections for payment advances. If a contractor takes advance or progress payments before substantial completion, the funds must be placed in escrow or secured by a bond or contract of indemnity, and the contract must include specific notices. This makes large unsecured deposits uncommon. New York City has further restrictions.
Statute or rule: N.Y. Gen. Bus. Law § 771(1)(e) and N.Y. Lien Law § 71-a(4), escrow or security for advances and reasonable progress payments.
Regulator: New York State Division of Consumer Protection – https://dos.ny.gov/consumer-protection
Notes and exceptions: Local licensing programs, for example New York City, Westchester, Nassau, and Suffolk, add requirements. Always check local rules.
Last verified: 2025-10-13
Source links: https://law.justia.com/codes/new-york/gbs/article-36-a/771/

North Carolina

Rule summary: No statutory cap on deposit amounts. North Carolina relies on contract terms and consumer protection law. Homeowners should avoid paying far in advance and should schedule payments to match the progress of completed work.
Statute or rule: N.C. Gen. Stat. § 75-1.1, unfair and deceptive trade practices. Three day home solicitation cooling off in G.S. 25A-39.
Regulator: North Carolina Licensing Board for General Contractors – https://nclbgc.org/
Notes and exceptions: Licensing is required for projects meeting the threshold. Many localities issue permits that list required inspections, useful for setting progress draws.
Last verified: 2025-10-13
Source links: https://ncdoj.gov/protecting-consumers/home-repair-scams/

North Dakota

Rule summary: No statutory cap on deposit amounts. Deposits are governed by contract and general consumer protection law. Homeowners should keep first payments small and tied to documented early costs.
Statute or rule: N.D.C.C. ch. 51-15, deceptive acts and practices. No numeric limit on deposits.
Regulator: North Dakota Attorney General, Consumer Protection – https://attorneygeneral.nd.gov/
Notes and exceptions: Verify contractor licensing where required and collect lien waivers on progress payments.
Last verified: 2025-10-13
Source links: https://attorneygeneral.nd.gov/ConsumerProtection/CPATips/HomeImprovementScams.htm

Ohio

Rule summary: No statutory cap on deposit amounts for projects that cost less than $25,000. Ohio’s Consumer Sales Practices Act and the three day home solicitation cooling off protect homeowners where contracts are signed away from the seller’s business. Deposit size is set by agreement, typically matched to early costs. A statewide deposit cap does apply to larger residential projects that fall under Ohio’s Home Construction Service Suppliers Act. If your roofing or other home construction contract exceeds 25,000 dollars, and your contractor qualifies as a “home construction service supplier” with at least 250,000 dollars in general liability insurance, the contractor may not collect more than 10 percent of the contract price before work begins. The statute also permits a higher initial amount only for special-order items that are nonreturnable or unusable before work starts, limited to 75 percent of the cost of those items.
Statute or rule: Ohio Rev. Code ch. 1345, including § 1345.23 on cooling off for home solicitation sales. Ohio Rev. Code § 4722.01(C) and (D) define covered “home construction service contracts” and the insurance requirement, and § 4722.04 states the 10 percent cap and 75 percent special-order exception.
Regulator: Ohio Attorney General – https://www.ohioattorneygeneral.gov
Notes and exceptions: Some cities license home improvement contractors, but state law does not set a deposit cap. Use a written schedule of progress payments.
Last verified: 2025-10-13
Source links: https://codes.ohio.gov/ohio-revised-code/section-1345.23, https://codes.ohio.gov/ohio-revised-code/section-4722.04

Oklahoma

Rule summary: No statutory cap on deposit amounts. The Roofing Contractor Registration Act requires written contracts and specific consumer protections, including cancellation and refund if an insurance claim is denied.
Statute or rule: 59 O.S. § 1151.21 and related provisions, roofing contractor requirements; no deposit cap.
Regulator: Oklahoma Construction Industries Board – https://oklahoma.gov/cib.html
Notes and exceptions: Three day home solicitation cooling off may apply. Confirm registration and insurance before paying a deposit.
Last verified: 2025-10-13
Source links: https://www.ok.gov/cib/documents/Roofing%20Contractors%20Act%202021.pdf

Oregon

Rule summary: No statutory cap on deposit amounts. Contracts over 2,000 dollars must be in writing and include payment terms. The Construction Contractors Board bond and complaint process provide limited backstop protection.
Statute or rule: ORS 701.305 and related CCB rules on contract content. No numeric deposit limit.
Regulator: Oregon Construction Contractors Board – https://www.oregon.gov/ccb/Pages/default.aspx
Notes and exceptions: If work is unreasonably delayed, consumers may have remedies under unfair practice laws. Tie deposits to special order materials and permits, then pay by milestones.
Last verified: 2025-10-13
Source links: https://www.oregonlegislature.gov/bills_laws/ors/ors701.html

Pennsylvania

Rule summary: Home improvement contractors may not request or receive more than one third of the contract price as a deposit, except that the actual cost of special order materials identified in the contract may be added up front. Remaining payments should follow a stated progress schedule.
Statute or rule: 73 P.S. § 517.7(a), deposit limit and special order materials rule.
Regulator: Pennsylvania Office of Attorney General – https://www.attorneygeneral.gov
Notes and exceptions: No payment at all before a signed contract. HICPA requires specific contract terms and consumer notices.
Last verified: 2025-10-13
Source links: https://www.attorneygeneral.gov/wp-content/uploads/2018/01/Act_132_Home_Improvement.pdf

Rhode Island

Rule summary: No statutory cap on deposit amounts. Rhode Island requires written contracts for jobs over 1,000 dollars and sets detailed disclosure rules; the Board publishes homeowner guidance on reasonable payment schedules.
Statute or rule: R.I. Gen. Laws § 5-65 and CRLB regulations, contract content and disclosures. No deposit cap.
Regulator: Rhode Island Contractors’ Registration and Licensing Board – https://crb.ri.gov/
Notes and exceptions: Three day home solicitation cancellation can apply. Ask for lien waivers and proof of registration.
Last verified: 2025-10-13
Source links: https://rules.sos.ri.gov/regulations/part/440-10-00-1, https://crb.ri.gov/consumer

South Carolina

Rule summary: No statutory cap on deposit amounts. Payment schedules are contractual. Licensing applies through the Residential Builders Commission, and consumer laws prohibit unfair practices.
Statute or rule: S.C. Code § 40-59-110 et seq., licensing and consumer protections. No numeric deposit limit.
Regulator: South Carolina Residential Builders Commission – https://llr.sc.gov/res/
Notes and exceptions: Three day cooling off for home solicitation sales. Use staged draws that match completed work.
Last verified: 2025-10-13
Source links: https://llr.sc.gov/res/PDF/Consumers.pdf

South Dakota

Rule summary: No statutory cap on deposit amounts. Consumer protection law prohibits deceptive practices. Homeowners should keep early payments modest and tied to the cost of permits or nonreturnable materials.
Statute or rule: SDCL 37-24-6, deceptive acts or practices. No numeric limit on deposits.
Regulator: South Dakota Attorney General, Consumer Protection – https://consumer.sd.gov/
Notes and exceptions: Three day cooling off for home solicitation sales. Obtain written receipts and lien waivers with draws.
Last verified: 2025-10-13
Source links: https://sdlegislature.gov/Statutes/Codified_Laws/2047676

Tennessee

Rule summary: For licensed home improvement work, it is a prohibited act to receive a deposit of more than one third of the contract price at or before execution, unless the contractor provides a performance and payment bond, or the owner knowingly agrees in writing after being made aware of the required disclosures.
Statute or rule: Tenn. Code § 62-6-510(a)(11) to (12), deposit limit with limited exceptions.
Regulator: Tennessee Board for Licensing Contractors – https://www.tn.gov/commerce/regboards/contractors
Notes and exceptions: No payment before a signed contract. Keep progress draws tied to verified milestones and materials.
Last verified: 2025-10-13
Source links: https://law.justia.com/codes/tennessee/title-62/chapter-6/part-5/section-62-6-510/

Texas

Rule summary: No statewide cap on deposits. Texas relies on contract terms, the three day home solicitation cooling off, and prohibitions on deceptive practices. Insurance claims work carries special notices about deductibles.
Statute or rule: Tex. Bus. and Com. Code ch. 601, home solicitation cancellation. No numeric deposit cap.
Regulator: Texas Attorney General – https://www.texasattorneygeneral.gov/
Notes and exceptions: Contractors may not waive insurance deductibles. Make checks payable to the company shown on the license or registration.
Last verified: 2025-10-13
Source links: https://statutes.capitol.texas.gov/Docs/BC/htm/BC.601.htm, https://www.tdi.texas.gov/consumer/storms/roofing-and-insurance-know-the-law.html

Utah

Rule summary: No statutory cap on deposit amounts. Utah requires written contracts above certain project value thresholds and provides protections through the Utah Residence Lien Recovery Fund and consumer statutes. Homeowners should limit the first payment to permits and nonreturnable materials. In Utah, the total retainage (the amount that a customer can hold back until the project is finished) is capped at 5% of the total project price.
Statute or rule: Utah Code § 38-11, Lien Recovery Fund provisions, and § 70C-5-102, home solicitation sales cooling off. No deposit cap.
Regulator: Utah Department of Commerce, Division of Professional Licensing – https://dopl.utah.gov/
Notes and exceptions: Verify license status and insurance. Use progress payments that match completed work with lien releases.
Last verified: 2025-10-13
Source links: https://dopl.utah.gov/contractor/

Vermont

Rule summary: No statutory cap on deposit amounts. The Attorney General’s consumer rules require clear timelines and disclosures, and provide remedies when a contractor fails to perform as promised, including refunds.
Statute or rule: 9 V.S.A. § 2453 and AG Rule CP-3, consumer fraud and home improvement practices. No deposit limit.
Regulator: Vermont Attorney General, Consumer Assistance Program – https://ago.vermont.gov/cap
Notes and exceptions: Three business day home solicitation cancellation may apply. Keep deposits modest unless special order materials are documented.
Last verified: 2025-10-13
Source links: https://ago.vermont.gov/consumer/home-improvement-fraud

Virginia

Rule summary: No statutory cap on deposit amounts. The Virginia Board for Contractors advises consumers to keep initial payments low, often no more than 10 percent or 1,000 dollars, or up to 30 percent if custom items are needed, but this is guidance, not law.
Statute or rule: Virginia Consumer Protection Act, Va. Code § 59.1-200, prohibits deceptive practices. DPOR publishes nonbinding payment guidance.
Regulator: Virginia Department of Professional and Occupational Regulation, Board for Contractors – https://www.dpor.virginia.gov/Boards/Contractors
Notes and exceptions: Three day cooling off for certain home solicitation sales. Use a progress schedule in the contract and get lien waivers.
Last verified: 2025-10-13
Source links: https://www.dpor.virginia.gov/sites/default/files/boards/Contractors/Consumer_Guidelines.pdf

Washington

Rule summary: No statutory cap on deposit amounts. Written contracts are required above 1,000 dollars and must list key terms, including the payment schedule. L&I licensing, bonding, and insurance provide some protection, but deposit size is set by agreement.
Statute or rule: RCW 18.27.114 and L&I rules on contract content. No numeric deposit limit.
Regulator: Washington State Department of Labor and Industries – https://lni.wa.gov/
Notes and exceptions: L&I encourages tying payments to milestones and materials delivered. Three day home solicitation cancellation may apply.
Last verified: 2025-10-13
Source links: https://lni.wa.gov/licensing-permits/contractors/hire-contractor, https://app.leg.wa.gov/rcw/default.aspx?cite=18.27.114

West Virginia

Rule summary: No statutory cap on deposit amounts. Deposits are contractual. West Virginia enforces against unfair or deceptive practices and warns homeowners to avoid paying large sums up front without a progress schedule. For insurance-funded residential roofing, a contractor may not require any advance payment until the statutory cancellation period has expired. If the owner cancels after an insurer denies coverage, the contractor must refund payments within ten days, with a narrow exception for emergency repairs the owner authorized. Roofing contractors must also provide a standard disclosure of the consumer’s rights.
Statute or rule: W. Va. Code § 46A-6-101 et seq., Consumer Credit and Protection Act. No deposit cap. W. Va. Code § 46A-6M-4(a), “a roofing contractor may not require any advance payments … when payment is expected to be made from the proceeds of a property and casualty insurance policy until the cancellation period … has expired”, refunds at § 46A-6M-4(b), emergency-repair exception at § 46A-6M-4(c), 5-business-day insurance-denial cancellation right at § 46A-6M-2.
Regulator: West Virginia Attorney General – https://ago.wv.gov/consumerprotection
Notes and exceptions: The advance-payment prohibition applies only when payment is expected from property and casualty insurance. Standard home-solicitation “three-day” rights may also apply depending on how and where you signed. Keep initial payments for non-insurance jobs modest and tied to permits or nonreturnable materials, collect lien waivers with each draw.
Last verified: 2025-10-13
Source links: https://code.wvlegislature.gov/46A-6M-4/

Wisconsin

Rule summary: No statutory cap on deposit amounts, but strong timing and disclosure rules. Wisconsin’s Home Improvement Practices regulation prohibits collecting money and then failing to provide materials or services within the agreed time or a reasonable time, and requires specific contract terms.
Statute or rule: Wis. Admin. Code ch. ATCP 110, unfair home improvement practices and required contract content. No deposit cap.
Regulator: Wisconsin Department of Agriculture, Trade and Consumer Protection – https://datcp.wi.gov/
Notes and exceptions: Three day cooling off for home solicitation sales. Include start and completion dates, and keep initial payments modest until work begins.
Last verified: 2025-10-13
Source links: https://docs.legis.wisconsin.gov/code/admin_code/atcp/090/110

Wyoming

Rule summary: No statewide cap on deposits. Wyoming’s consumer protection law prohibits unfair or deceptive practices; deposit size is set by agreement between the contractor and the homeowner. Homeowners should limit initial payments to documented early costs and pay according to work progress milestones thereafter.
Statute or rule: Wyo. Stat. § 40-12-105 and related provisions, no numeric deposit cap.
Regulator: Wyoming Attorney General, Consumer Protection and Antitrust Unit – https://ag.wyo.gov/law-office-division/consumer-protection-and-antitrust-unit
Notes and exceptions: Consider using escrow for large special order materials. Always verify contractor registration and insurance.
Last verified: 2025-10-13
Source links: https://ag.wyo.gov/law-office-division/consumer-protection-and-antitrust-unit, https://law.justia.com/codes/wyoming/title-40/chapter-12/article-1/section-40-12-105/