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Know the Law & Why Deductible Fraud Hurts You

Can a Roofing Contractor Pay my Deductible?

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No. In Texas, homeowners are responsible for paying their insurance deductibles as outlined in their insurance policy agreements.

Insurance Code Chapter 707: Requires a property insurance policyholder to pay the deductible and authorizes insurance companies to request proof of payment.

Is it a crime for a roofing contractor to pay or waive my deductible?

Yes, it is a class B misdemeanor (punishable by a jail sentence of up to 180 days + $2,000 fine) if a contractor pays, waives, absorbs, rebates, credits or otherwise declines to charge or collect a deductible.

How does deductible fraud hurt homeowners?

What is the new deductible law for roofing in Texas?

The Texas Department of Insurance (TDI) has strict regulations set forth by H.B 2102 passed in 2019, making it illegal for a roofer or any contractor to directly pay a homeowner’s insurance deductible as an incentive to secure a contract for their services.

In addition, the Business and Commerce Code 27.02: Prohibits waiving or rebating a deductible and includes a required notice on contracts of $1,000 or more involving insurance settlements.

Lastly, Texas law requires that contractors must have the following text in their consumer contracts (in a minimum 12 pt font):​ “Texas law requires a person insured under a property insurance policy to pay any deductible applicable to a claim made under the policy. It is a violation of Texas law for a seller of goods or services who reasonably expects to be paid wholly or partly from the proceeds of a property insurance claim to knowingly allow the insured person to fail to pay, or assist the insured person’s failure to pay, the applicable insurance deductible.”

What should I do if i suspect deductible fraud?

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