Can You Waive My Deductible?
The short answer directly from Texas Department of Insurance is...
No. A deductible is part of your home insurance policy. It's illegal for contractors to waive your deductible or help you avoid paying it.
No roofing company or contractor can waive a deductible. There is absolutely no legal way for any company to pay for, waive, reduce, refund, or credit any portion of your deductible. None. Zero.
The main reason for this is that this is part of your legally binding contract between you and your insurance carrier. When you purchased your policy, you agreed with them that you would be responsible for a percentage of your total claim. Therefore, when the insurance carrier agrees on an estimate for your roof, they also expect you to cover your portion of the deal. That is the deductible.
Texas Legislation
Sec. 27.02. GOODS OR SERVICES PAID FOR BY INSURANCE PROCEEDS: PAYMENT OF DEDUCTIBLE REQUIRED [CERTAIN INSURANCE CLAIMS FOR EXCESSIVE CHARGES].
(A) In this section, "property insurance policy" has the meaning assigned by Section 707.001, Insurance Code.
(B) A contract to provide a good or service that is reasonably expected to be paid wholly or partly from the proceeds of a claim under a property insurance policy and that has a contract price of $1,000 or more must contain the following notice in at least 12-point boldfaced type: "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."
Though this has been illegal since 1989, the original law was poorly written. The new bill aims to remove all ambiguity. There are no legitimate roofing companies that do not know this is illegal.
How Do Contractors Attempt to Waive Deductibles?
There are several means in which this can be attempted. The one I have run across a few times is the 'dual contract' deal. The contractor simply asks you to sign two contracts. The deal is that the cost of the project or roof is less on yours, and more on the other. Once you sign both, the contractor fraudulently sends the more expensive one to your carrier, defrauds them into paying out the higher price to the homeowner, and the contractor simply takes the lesser amount for the job. The difference is at least, if not more, than your deductible. Therefore, you have saved that amount. At this point, your shady roofer has not only defrauded your insurance carrier, he has actively made you accessory to it. It doesn't matter if you knew it was illegal. You and your contractor can be fined and found guilty of insurance fraud.
Why? Because your roofer obviously could have done the roof for less, but he charged your carrier more. It's all illegal. There are several variations of this including 'sign allowances' whereby a roofer offers to pay you for advertising by placing their sign in your yard. Then, they 'pay' you for advertising. Unsurprisingly, it will be the amount of your deductible. The spirit of this scenario is the same...to rebate your deductible and it too is illegal.
Yet another variation is to simply bill you for the full amount and then reduce the price after the fact, leaving you with some extra cash. Either way, they cheated the insurance company. What's worse is that you can be accused of fraud.
It Still Doesn't Sound That Bad
Well, it is. You have actively contracted with a company that would willingly cheat an industry that has more money and lawyers than you could possibly imagine. Let that sink in. If your contractor will take a chance on something like that, they will absolutely take a chance on cheating you, the homeowner. Moreover, many of these contractors will attempt to save money by using cheap labor, cheap materials, and inferior installation techniques in order to increase profits and possibly help rebate your deductible. Your insurance carrier has likely already provided an estimate. They are very well aware of what your roof should cost and they will not pay any more than they have to. It is highly suspect when a roofer can do that job for less than the insurance estimate unless they are cheating the system, using stolen materials, overlaying an install without full tear off, etc. Never forget that roofers and contractors are absolutely in business to make a living. It's just that some are willing to risk their business, jail time, your house, making you accessory to insurance fraud...all in an attempt to win the project. It's not worth it for the homeowner and makes the entire industry look bad.
How Do I Find Good Contractors?
Easy. Look for them. After a hail storm, they may find you. For me, you can simply ask for references. All of my documents have local phone numbers that match. My photo is on nearly every social media page associated with the company in which I am contracted. My business cards have my photo. It all adds up. More importantly, I have reviews where I am noted by name, social media posts, workwear with the company logos on it and I dress for the role I am in. You won't see me pulling up to your house in a car wearing pants with holes in them with a ladder sticking out the window. I have a truck, I wear jeans, my shirts have a logo, my business cards have my photo and name, I carry roofing samples and contracts, and I don't shy away from hard questions or technical details of roofing.
Conclusion
It's completely illegal for anyone to pay for your deductible. If you find a contractor that brings that up, it is a very simple means of weeding them out. You can also have them reported to the Texas Attorney Generals Consumer Protection Hotline at 800-621-0508. More information can be found at the links below.
