A.R.S. 32-1158.02: Arizona Storm-Damage Repair Contract Rules

After a monsoon or hailstorm, A.R.S. 32-1158.02 protects you when a contractor offers to repair your home and the work will be paid by your property insurance. It gives you a right to cancel, limits how much you can be asked to pay up front, and bars high-pressure tactics. This page explains those protections and when they apply.

What this statute says

A.R.S. 32-1158.02 covers contracts for the residential repair or replacement of damage from a catastrophic storm, where the work falls under contractor licensing and the homeowner is filing a property-insurance claim. It is built for the storm-chaser scenario: a roofer or repair crew knocks on doors after a storm and offers to "handle your insurance." Two cancellation rights anchor the section.

You can walk away for any reason in the first four business days:

You may cancel this contract at any time, for any reason, within four business days after signing this contract.

And you can cancel after the insurer says no:

You may cancel this contract at any time within seventy-two hours after you have been notified that your insurer has denied your claim to pay for the goods and services to be provided under this contract.

The statute also caps the up-front payment. The contract may not require more than half down:

The down payment section on the execution of a contract entered into pursuant to this section shall not require more than fifty per cent of the total contract.

On top of that, the contractor cannot promise that your insurer will approve the claim, must use written change orders for any change, and generally cannot negotiate the claim for you unless authorized and uncompensated.

What it means for your home build

These rules matter most after Arizona's monsoon season, when hail and wind hit roofs, stucco, and windows across Phoenix, Apache Junction, and the East Valley. For example, say a hailstorm dents your roof and a crew offers a $28,000 replacement "at no cost once insurance pays." Under 32-1158.02, you have four business days to cancel for any reason, no penalty. If your insurer later denies the claim, a fresh 72-hour cancellation window opens once you are notified. And no one can require more than $14,000 (50 percent) down on that $28,000 job.

The practical takeaway: never let a storm-chaser rush you into signing the day they show up. Get the ROC license number, keep the down payment within the cap, and insist that any change to scope or price come as a written change order . A promise that "insurance will definitely cover it" is exactly the assurance this statute forbids.

How this connects to other rules

This section is a specialized companion to A.R.S. 32-1158, the general rule on what every Arizona construction contract over $1,000 must include. Where 32-1158 sets the baseline terms, 32-1158.02 adds storm-and-insurance protections on top. The licensing backbone still applies: under A.R.S. 32-1151 the repair crew must hold a contractor's license , and under A.R.S. 32-1153 an unlicensed one cannot sue you for payment. To build a solid agreement in any situation, see what to include in a custom home contract and the comparison of cost-plus vs fixed-price home contracts .

Full text and source

Read the current section, including any amendments and the full disclosure language, on the legislature's site: View A.R.S. 32-1158.02 on azleg.gov .

How the rule applies to a specific repair contract depends on the facts, so confirm details with a qualified professional before relying on it.