Minnesota Contractor Deposit Rules (2026): No Cap, Money Held in Trust, a Roofing Cancel After Denial
Minnesota sets no deposit cap. Payments are held in trust for the people who did the work, and an insurance-paid roofing contract can be cancelled within 72 hours of a denial. From Minn. Stat. 514.02 and 326B.811.
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
“shall be held in trust by that person”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $8,000 | Any job: no cap; the money is held in trust for the people who did the work | No cap |
| $25,000 | Any job: no cap; the money is held in trust for the people who did the work | No cap |
| $60,000 | Any job: no cap; the money is held in trust for the people who did the work | No cap |
Who it covers and the exceptions
Trust rule
Payments for an improvement to real estate are held in trust. Knowingly failing to use them for unpaid labor and materials is theft, punishable under 609.52 (Minn. Stat. 514.02, subd. 1).
Covers
Insurance-paid residential roofing contracts with a residential roofer, or with a residential building contractor or remodeler providing roofing services (Minn. Stat. 326B.811, subds. 1 and 4).
Cancel window
Within 72 hours after the insurer notifies the insured that the claim has been denied, by written notice to the contractor's address in the contract (Minn. Stat. 326B.811, subd. 1).
Refund
Within ten days after cancellation the contractor must return payments and any note or evidence of debt, but may keep compensation for emergency services performed (Minn. Stat. 326B.811, subd. 3).
Minnesota deposit questions
Is there a limit on how much a Minnesota contractor can take as a deposit?
No. Minnesota sets no deposit cap, but the money is held in trust for the people who work on and supply the job, and knowingly misusing it is theft (Minn. Stat. 514.02).
Can I cancel my roofing contract in Minnesota if insurance denies the claim?
Yes, within 72 hours after your insurer tells you the claim is denied. The roofer must return your payments within ten days, minus any emergency work (Minn. Stat. 326B.811).
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.