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Roofing contract red flag checker

Have the contract in front of you. Tick what it includes and what happened when you got it. Each flag links to the agency rule behind it.

17 checks each tied to a published rule From the FTC, the California Contractors State License Board, the Texas Department of Insurance and Florida law. State law varies; your state’s own rules win.

The biggest red flags in a roofing contract are a large deposit, no license number, no written scope, blank spaces, and clauses that hand your insurance claim to the roofer. Door-knocking “in the area”, cash-only payment and pressure to sign today are the storm-chaser pattern the FTC and the Texas Department of Insurance warn about.

Check your roofing contract

Tick what applies. Nothing is stored or sent.

The contract includes
Any of these happened or are in it
Deposit
0red flags

    A checklist, not legal advice. State law varies. For a contract you are unsure about, ask your state consumer protection office or a lawyer before you sign.

    How to use it

    1. 1
      Use the paper, not your memory

      Read the contract itself. A promise that is not written down does not count here.

    2. 2
      Tick what it has

      The first list is what a contract should include. Leave a box empty if you cannot find it.

    3. 3
      Tick what happened

      The second list is warning signs. Tick any that are in the contract or happened while you were being sold it.

    4. 4
      Add the deposit

      Type the contract price and the deposit asked for. The tool shows the deposit as a share of the price.

    5. 5
      Take the flags back to the roofer

      Ask for each missing item in writing before you sign. If the answer is pressure, that is your answer.

    Assumptions (with sources)

    CheckRule it comes from
    Has: The contractor’s name, address, phone and license numberFTC · CSLB (California)
    Has: A written scope: the work, materials and quantitiesFTC · CSLB (California)
    Has: An estimated start and completion dateFTC
    Has: A payment schedule tied to work doneCSLB (California)
    Has: A written right to cancel within three business daysFTC
    Has: Who gets the permit, and it is the rooferCSLB (California) · FTC
    Has: Labor and material warranties, in writingCSLB (California)
    Has: Changes need a written change order signed by both of youCSLB (California)
    Flag: Blank spaces left in the contractTDI (Texas)
    Flag: Wording like “repairs for the value of the insurance proceeds”TDI (Texas)
    Flag: An assignment of benefits: you sign your insurance claim over to the rooferFlorida SB 2-A
    Flag: An offer to waive, cover or rebate your deductibleTDI (Texas)
    Flag: Cash only, or the full price up frontFTC
    Flag: They knocked on your door because they were “in the area”FTC · TDI (Texas)
    Flag: Pressure to sign today: a price that expires, a storm dealFTC
    Flag: The “estimate” you signed is actually the contractTDI (Texas)
    Deposit: over 10% of the price or over $1,000CSLB (California): the down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less. Other states differ; the FTC notes some states cap deposits.

    California, Texas and Florida rules are state law and apply only there. They are used as a yardstick elsewhere because they are written down.

    What the result means

    No flags

    The contract covers the basics these agencies list. It does not mean the roofer is any good. Check the license with your state board and read choosing a roofer.

    Missing items

    Ask for each one in writing before you sign. A roofer who does good work can usually add a license number, dates and a scope in minutes.

    Warning signs

    Insurance and payment flags are the costly ones. Talk to your insurer before signing anything that mentions your claim, and do not pay in full up front.

    Already signed?

    If you signed at home, the FTC says you should have a written right to cancel within three business days. Check the date you signed.

    Embed this calculator

    You can put this roofing contract red flag checker on your own site, free. Paste the code below into your page’s HTML. Keep the credit link under it. The tool runs in the reader’s browser and stores nothing.

    Questions this calculator answers

    What are red flags in a roofing contract?
    Blank spaces, no license number, no written scope or dates, a large deposit or full payment up front, cash only, wording that gives the roofer your insurance proceeds, and offers to cover your deductible. The FTC, CSLB and the Texas Department of Insurance each list these.
    How much deposit should a roofer ask for?
    It depends on your state. California caps a home improvement down payment at $1,000 or 10% of the price, whichever is less. The FTC says not to pay the full amount up front and notes some states limit deposits. Ask your state consumer agency.
    Can a roofer pay my insurance deductible?
    In Texas, no: TDI says it is illegal for a contractor to waive your deductible or help you avoid paying it. Other states have their own rules. Either way, it can mean false repair costs go to your insurer.
    What is an assignment of benefits on a roof?
    A clause that signs your insurance claim rights over to the roofer, so they deal with the insurer and get paid directly. Florida banned it for property policies issued from 2023. Elsewhere, talk to your insurer before you sign one.
    Can I cancel a roofing contract I signed at home?
    The FTC says a contract signed at home, or anywhere other than the seller’s place of business, should include a written right to cancel within three business days.
    How do I spot a storm chaser roofer?
    They knock on doors after a storm, say they are “in the area” or have leftover materials, push you to sign today, and ask for cash or full payment up front. Those are the FTC’s and TDI’s warning signs.

    Sources and methodology

    Figures dated October 22, 2026. Last reviewed .

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