Alabama Contractor Deposit Rules (2026): $0 on Insurance Roofing Until Day Five
Alabama sets no general cap on contractor deposits, but a roofer paid by insurance can't require any payment until five business days after a claim denial. From Ala. Code 8-36-2.
Not legal advice. General information from each state's statutes, checked Oct 20, 2026. Local rules and the facts of your contract can change the answer; for a specific contract, ask a lawyer licensed in your state.
Set the deposit
Every payment tied to a stage
The deposit and payment schedule in the Clamp app: a $1,000 deposit due when the customer signs, then every other payment tied to a stage of the job. $1,000 on this $17,699 bathroom is under every state's cap. Sample data.
What the law says
“shall not require any payments from an insured until the five-day cancellation period has expired”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $8,000 | Insurance-paid roofing: nothing can be required until the five-day window after a denial closes | $0 |
| $25,000 | Insurance-paid roofing: nothing can be required until the five-day window after a denial closes | $0 |
| $60,000 | Insurance-paid roofing: nothing can be required until the five-day window after a denial closes | $0 |
How the rule works
The window
The insured may cancel before midnight on the fifth business day after written notice from the insurer that the claim is not covered in whole or in part.
Emergency work
Emergency services the insured acknowledges in writing can be collected when they are rendered.
Other work
The Home Builders Licensure Law (Code 34-14A) has no deposit limit; it requires a licensee to use a written contract, and it covers roofers on jobs over $2,500.
Alabama deposit questions
Can an Alabama roofer ask for a deposit on an insurance job?
Not until five business days after a claim denial have passed, except for emergency work the owner acknowledges in writing.
Compare other states
How we checked
We read each state's statute or licensing rule on the official legislature or agency site and quote it as written. Where the official site would not load, the row says so and names the copy we read. A state stays "still being checked" until we have read the full rule; we never mark it "no cap" before then. Last checked .
This guide explains what the statutes say. It is not legal advice; for a specific contract, ask a lawyer licensed in your state.