Arkansas Contractor Deposit Rules (2026): No Cap, a 3-Day Cancel After an Insurance Denial
Arkansas sets no deposit cap. On an insurance-paid roof or exterior repair, the homeowner can cancel for 3 business days after a denial and payments come back within 10 days. From Ark. Code 4-88-904.
Not legal advice. General information from each state's statutes, checked Oct 28, 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
“Within ten (10) days after cancellation of a residential real estate repair contract”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $8,000 | Insurance-paid roof or exterior repair: no cap; the owner can cancel for 3 business days after a denial | No cap |
| $25,000 | Insurance-paid roof or exterior repair: no cap; the owner can cancel for 3 business days after a denial | No cap |
| $60,000 | Insurance-paid roof or exterior repair: no cap; the owner can cancel for 3 business days after a denial | No cap |
Who it covers and the exceptions
Covers
Written contracts with an insured to repair residential real estate (roof or other exterior work) paid through a property and casualty insurance policy (Ark. Code Ann. 4-88-902)
Cancel window
Insured may cancel within 3 business days after written notice from the insurer that all or part of the claim or contract is not a covered loss (Ark. Code Ann. 4-88-904(b))
No early start
The contractor may not commence work until the insured's cancellation right has expired (Ark. Code Ann. 4-88-904(a))
Refund
Within 10 days of cancellation the contractor must return payments, partial payments, deposits, and notes; reasonable value of emergency services may be kept (Ark. Code Ann. 4-88-904(d))
Arkansas deposit questions
Is there a limit on how much deposit a contractor can take in Arkansas?
No. Arkansas law does not cap deposits on residential or home improvement jobs. The Attorney General advises homeowners to be wary of contractors who demand full payment before work is finished.
Can I cancel a roofing contract in Arkansas if insurance denies my claim?
Yes. If the contract is for repairs paid by your property insurance, you can cancel in writing within 3 business days after your insurer tells you in writing that all or part of the claim is not covered. The contractor must return your payments and deposits within 10 days (Ark. Code Ann. 4-88-904).
Can an Arkansas storm contractor start work right after I sign?
Not on an insurance-paid repair. The contractor may not begin work until your cancellation right has expired (Ark. Code Ann. 4-88-904(a)).
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.