There’s a bit of confusion surrounding the legality of roofers offering to waive or cover deductibles. As of September of 2019 Texas law has made itself very clear in HB2102:
“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.”
No question, it is illegal, but it is still happening. Money hungry contractors will take the risk for a short time to make a quick buck off of a storm. They aren’t just taking the risk for themselves but for the homeowners as well. Oftentimes the homeowners aren’t aware they are doing anything illegal, convinced by their roofer that they know of a “loop-hole”.
Far and above, the most common “loop-hole” is the yard sign promotion. The roofer explains they have a marketing promotion for anyone who will let them put a sign in their yard. The payment for this promotion is conveniently priced at exactly the deductible amount. Sounds a little fishy.
The law goes further: “a person who sells goods or services commits an offense if the person: provide a rebate or credit in connection with the sale of the good or service that will offset all or part of the amount paid by the insured as a deductible: or in any other manner assist the insured in avoiding monetary payment of the required insurance deductible…”
The law does allow for legitimate yard sign promotions that reflect actual value of the marketing services rendered, and that are offered to anyone. If it’s truly worth the roofer $1,500 to have a sign in your yard, they would offer the same promotion to anyone else in the neighborhood. The roofer isn’t buying advertising, he’s buying your business, and it’s as obvious as it seems.
Still, the reality is you most likely won’t get caught. It’s just one time. You may be thinking it’s worth the risk. I can surely tell you it is not. This might be the only time you commit the fraud, but your roofer is doing it hundreds, if not thousands, of times. They are also charging much less for the work, and are most likely cutting corners. Between rising overhead costs, a surplus of warranty calls, and the letter of the law against them, the deductible-eating roofer most likely won’t be around to honor their stellar warranty.
If you’re in need of a law-abiding roofer, give us a call. We don’t just want to restore your property, we want to improve your property.