Missouri Contractor Deposit Rules (2026): No Cap, Cancel Until Day Five After an Insurance Denial
Missouri sets no deposit cap. On insurance-paid roof or exterior work, the owner can cancel until the fifth business day after a coverage denial and gets payments back within 10 days. From RSMo 407.725.
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
“may cancel the contract prior to midnight on the fifth business day”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $8,000 | Insurance-paid roof or exterior work: no cap; refundable until day five after a denial | No cap |
| $25,000 | Insurance-paid roof or exterior work: no cap; refundable until day five after a denial | No cap |
| $60,000 | Insurance-paid roof or exterior work: no cap; refundable until day five after a denial | No cap |
Who it covers and the exceptions
Covers
Contractors who repair or replace roof systems or perform other exterior repair, replacement, or construction paid from a property and casualty policy (RSMo 407.725.1). The 2014 version extends this from residential to residential or commercial real estate.
Cancel window
Before midnight on the fifth business day after the insured receives the insurer's written notice that the claim is not covered in whole or part (RSMo 407.725.3).
Refund
Within ten days after cancellation the contractor must tender payments, partial payments, or deposits, less the reasonable value of emergency services the insured acknowledged in writing (RSMo 407.725.5).
Deductible ban
A contractor may not advertise or promise to pay or rebate any part of the insurance deductible, and may not negotiate the claim for the owner (RSMo 407.725.2 and 407.725.6).
Missouri deposit questions
Does Missouri limit how much a contractor can collect up front?
No. Missouri has no general deposit cap. The only rule here is for insurance-paid roof and exterior work, where deposits must be refunded if the owner cancels after a non-coverage notice (RSMo 407.725).
How long do I have to cancel a roofing contract in Missouri after insurance denies the claim?
Until midnight on the fifth business day after you receive the insurer's written notice. The contractor must return your money within ten days (RSMo 407.725.3 and 407.725.5).
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.