In our guide to Texas’ shady roofing market, we mentioned that waiving deductibles is illegal. In this article, we’re going to look a bit closer at why it’s illegal, why waiving deductibles doesn’t benefit homeowners anyway, and the importance of finding a reputable roofer to get the repairs done right.
Yes, It’s Illegal to Waive Deductibles in Texas.
It’s that simple.
The Texas Insurance Code (§ 707.002) clearly outlines that policyholders must pay the applicable deductible stated in their insurance policies. Here it is:
Sec. 707.002. PAYMENT OF DEDUCTIBLE REQUIRED. A person insured under a property insurance policy shall pay any deductible applicable to a first-party claim made under the policy. Added by Acts 2019, 86th Leg., R.S., Ch. 1099 (H.B. 2102), Sec. 1, eff. September 1, 2019.
You’ll notice the mention of “HB 2102” – that’s the act that specifically prohibits roofing contractors from paying deductibles for homeowners in Texas. The law, officially known as the Payment of Insurance Deductible Bill, was signed by Governor Greg Abbott in June 2021 and went into effect on September 1, 2021.
Or, as the Texas Department of Insurance (TDI) says, “It is illegal for contractors or roofers to offer to waive a deductible or promise a rebate for all or part of a deductible. Under the new law effective September 1, 2019, violators could get up to a $2,000 fine and up to six months in jail.”
It’s no joke. These new laws, big penalties, and the TDI’s Fraud Unit are all signs that the state is actively intervening to protect consumers from a shady market that has gotten out of control. But why, you might ask, would consumers need to be protected from having an expense waived?
Waiving Deductibles Does NOT Benefit Homeowners.
It may seem counterintuitive at first, but waiving deductibles isn’t in the homeowner’s best interest. In the next section, we’ll explain why some contractors try to do it. But for now, it’s important to understand that gifts and waivers are a serious red flag that you aren’t working with a professional.
Not only is this contractor willing to make you complicit in insurance fraud, but they’re also trying to entice you to give them the right to overcharge your insurance. That’s all they’re really looking for. This isn’t about repairing your roof. In fact, they’ll use the cheapest materials possible, cutting corners wherever they can, to ensure as little time and money is spent on your roof as possible.
As a result, the damage won’t be adequately repaired, and you’ll have yet another problem the next time serious weather rolls through. The types of contractors who waive deductibles, in other words, aren’t in this business to provide a service and become a roofer you trust. It’s a scam.
So, Why Do Some Contractors Try to Do It?
To access your insurance, inflate repair costs by exaggerating damage, spending as little money as possible on the repair, and then running off with as much as possible. The anecdote you’ll hear goes something like this: Before the storm even dissipated, someone started knocking on doors through the neighborhood. They may mention some kind of “neighborhood discount,” or maybe offer a free TV or a waived deductible if you sign up for their repair service.
The truth is, this isn’t about earning your business. It’s about taking advantage of homeowners when they’re anxious and confused. As a rule of thumb, don’t sign anything, don’t be enticed by gifts or waived deductibles, and always thoroughly check the reputation of contractors through reviews, references, and industry certifications. If you can’t find any information on them, then opt for a reputable contractor with a long and positive work history.
Here’s Why You Need a Reputable Roofer.
Of course, navigating the insurance claims process can be overwhelming, but a reputable roofer will guide you through the process. They’ll have demonstrable experience and deep industry expertise, use high-quality materials, and make sure the job is done right.
You’ve already been through enough. To ensure your repairs and insurance claims go smoothly, look for contractors who are in this business to provide a service for their communities – not to run off with your money.
We’re Here to Help
Want to learn more? You can read our comprehensive insurance guide and click through the links within to explore the full series.
The Texas roofing market can be a minefield of fraudulent practices, but with the right knowledge and precautions, you can protect yourself and ensure your home is properly repaired. If you have any questions or need assistance with damage, contact DFW Roofers at (469) 751-4018 or schedule an appointment through our online appointment form.
