How Much Deposit Can a Contractor Ask For in Illinois?
Illinois does not cap the deposit by percentage, but home repair work over $1,000 needs a signed written contract, a consumer-rights pamphlet, and a business carrying set insurance.
Illinois protects a homeowner's money through the Home Repair and Remodeling Act rather than a deposit cap. For work over $1,000 the business must furnish a written contract for the customer to sign,1 must hand over the state's "Home Repair: Know Your Consumer Rights" pamphlet before the contract is executed,2 and must carry set amounts of liability and property-damage insurance.3 This page explains those requirements.
Written contract and the consumer-rights pamphlet
The core rule ties to a written contract. For home repair or remodeling work over $1,000, a person in that business must furnish the customer, for signature, a written contract.1 That written contract is where the price and any deposit are set out, which is what makes a large up-front demand easy to spot.
Illinois pairs the contract with disclosure. A home repair and remodeling business must provide its customers a copy of the "Home Repair: Know Your Consumer Rights" pamphlet before the contract is executed.2 The pamphlet is meant to be in your hands before you commit money, not after.
Insurance the business must carry
Illinois also requires the business to be insured. A home repair and remodeling business must maintain public liability and property damage insurance in the amount of $100,000 per person and $300,000 per occurrence of bodily injury and $50,000 per occurrence for property damage.3 That coverage is a floor a legitimate contractor is expected to meet.
The practical takeaway in Illinois is to require the signed written contract and the consumer-rights pamphlet before any deposit, and to treat a contractor who will not put the job in writing or cannot show insurance as a risk the Act is designed to flag.
Sources
In Illinois, for home repair or remodeling work for over $1,000, a person engaged in that business must furnish the customer, for signature, a written contract.
In Illinois, a home repair and remodeling business must provide its customers a copy of the "Home Repair: Know Your Consumer Rights" pamphlet before the contract is executed.
In Illinois, a home repair and remodeling business must carry public liability and property damage insurance of $100,000 per person and $300,000 per occurrence for bodily injury and $50,000 per occurrence for property damage.
Frequently asked questions
- Does Illinois cap how much deposit a contractor can ask for?
- Illinois does not set a percentage cap. Instead, home repair work over $1,000 requires a signed written contract and a consumer-rights pamphlet, and the business must carry set insurance.
- When does an Illinois home repair contract have to be in writing?
- For home repair or remodeling work over $1,000, the business must furnish the customer a written contract to sign.
- What insurance must an Illinois home repair business carry?
- Public liability and property damage insurance of $100,000 per person and $300,000 per occurrence for bodily injury, and $50,000 per occurrence for property damage.
Last reviewed August 3, 2026
This page is general information about state law, not legal advice. Laws change, and how they apply depends on the facts of your situation.