Understanding Roof Insurance Deductibles and Texas Law
As a Texas business owner, you want to employ commercial roofing services that uphold the highest standards. And nowhere is this requirement more pressing than during a roofing insurance claim. In recent years, changes in insurance deductible laws have been made that protect property owners from scams and insurance fraud. To avoid legal issues and low-quality contractors, it’s vital to stay informed on this subject.
An Overview of Texas Roof Insurance Deductibles
A roof deductible is the amount of money a property owner must pay out-of-pocket for roof repair or replacement before their insurance coverage kicks in. For example, if the cost to replace a roof is $10,000 and the homeowner has a $1,000 deductible, the insurance company would pay $9,000, and the homeowner would contribute the $1,000 deductible.
In the past, some Texas roofing companies took advantage of legal loopholes to waive or absorb the deductible for property owners. Unfortunately, this practice often led to insurance fraud, inflated claims and substandard work.
Insurance Deductible Law to Protect Property Owners
On September 1, 2019, HB2102 was signed into Texas law. This new law, titled Payment of Insurance Deductible, makes it illegal for contractors to waive, absorb or otherwise offset the insurance deductible.
Under this law, a commercial roofing company is prohibited from offering to pay for a property owner’s deductible as an incentive to secure the job. Property owners are required to pay the deductible amount before the insurance company pays their claim.
For many years, the waiving of deductibles in roofing resulted in some contractors inflating prices and performing poor-quality roof repairs. By ensuring that claims are processed fairly and transparently, this new law aims to protect both consumers and insurers.
What Insurance Deductibles Law Means for Property Owners
Following substantial roof damage, the offer of a “free roof” could certainly be tempting. In fact, unscrupulous contractors often target property owners in the aftermath of extreme weather events. However, property owners who take the offer to waive the deductible could also become unwittingly implicated in insurance fraud, opening the door for potential legal penalties. Again, “waiving the deductible” can also be associated with low-quality installations and unfinished repairs.
Here are some steps you can take to identify a quality roofing company and avoid insurance deductible scams.
- Seek recommendations from friends and family.
- Hire a reputable roofing company with many positive customer reviews.
- Choose an affordable policy, and set aside a fund for your insurance deductible.
- Check the terms of the contract, and avoid contractors offering to waive the deductible.
- Get a roofing insurance inspection to understand the extent of the damage.
Contact Us for Roof Repairs and Replacement in Texas
Meis Roofing is a premier provider of commercial roofing services throughout Texas. When you need assistance with roof maintenance, repairs, replacement and insurance inspections, we are here to help. For more information, call 866-211-1116 or request a free roofing inspection today.
