Can a roofing company waive or cover my insurance deductible?
No. Chapter 707 of the Texas Insurance Code makes it illegal for a contractor to pay, waive, rebate or absorb any part of a homeowner’s insurance deductible. If a contractor offers to cover your deductible, choose a different company.
Why the law exists
Your deductible is the part of an insurance claim you agreed to pay when you bought your policy. When a contractor covers it, the cost is often added back into the claim, which means the insurance company ends up paying the homeowner’s share.
Texas passed this law to stop that practice and to protect homeowners from contractors who inflate insurance claims.
What an illegal offer can look like
An offer to cover a deductible is not always stated plainly. It may be described as a discount that matches the deductible, a rebate for putting up a yard sign, or free upgrades worth about the same amount.
A real discount applies to the price of the job whether or not insurance is involved.
If you are worried about paying your deductible
Talk with your insurance company and your contractor early in the process. Insurance companies often pay a claim in more than one payment, and you may be able to plan for your deductible around that schedule.
You can also ask your contractor about splitting the work into phases so the cost is spread out.
Related questions
What if the contractor calls it a discount?
If the discount is only offered when an insurance claim is involved and it matches your deductible, it may still be against the law.
Can I pay my deductible over time?
In some cases a payment plan can be arranged. That is different from having the deductible waived, which is not allowed.
