After a big hailstorm, it is common to hear an offer like "We'll cover your deductible" or "You won't pay a dime out of pocket." It sounds like a great deal. In Texas, it is against the law.
What Texas Law Says
Under Chapter 707 of the Texas Insurance Code, a contractor who repairs property covered by an insurance claim may not pay, waive, rebate, or absorb all or part of the homeowner's deductible. That includes indirect tricks, such as:
- Offering a "discount" equal to the deductible
- Inflating the estimate so the insurer pays for the deductible
- Paying you for putting a yard sign up or for "advertising" in an amount that offsets your deductible
- Promising a rebate or gift card after the job
The law also requires contractors who work on insurance claims to include a notice in their contract stating that the homeowner is responsible for paying the deductible. Contractors who break the rule can face penalties.
Why the Law Exists
When a contractor absorbs your deductible, the money has to come from somewhere. Usually that means the estimate was inflated, which is insurance fraud, or corners get cut on the job to make up the difference. Both hurt homeowners. Inflated claims also drive up premiums for everyone in Texas.
The Risks for You as a Homeowner
- Lower-quality work. A roofer who gives away thousands of dollars up front needs to recover it somewhere, often through cheaper materials or rushed labor.
- Claim problems. If your insurer finds that the claim was inflated, it can create issues with your claim and your policy.
- A red flag about the company. A contractor willing to bend this rule may bend others, such as permits, insurance, or warranties.
Rule of thumb: If a roofer offers to cover, waive, or "work with" your deductible, thank them and find another roofer.
Legal Ways to Manage Your Out-of-Pocket Cost
- Financing. You can spread the cost of your deductible over time. JD Roofing Solutions offers flexible financing. Read more in roof financing in Texas.
- Make sure the estimate is complete. A thorough inspection makes sure every legitimately damaged item is included, so you are not paying for things your policy should cover.
- Check for recoverable depreciation. On an RCV policy, finish the work and submit the invoice to collect the withheld amount. See ACV vs RCV.
- Review your deductible at renewal. Understand the trade-off between a lower premium and a higher deductible before storm season.
How Honest Roofers Handle Claims
A reputable roofer inspects your roof, documents the damage, meets with the adjuster if you want them to, and bills for the work actually done at fair prices. You pay your deductible, your insurer pays the rest of the covered amount, and the job is done right.
JD Roofing Solutions follows Texas law on every insurance claim. Have questions about your claim? Call 832-295-3277.
