If you have been a homeowner in the DFW area for any length of time, you know hail brings the roofers. Some, not all, make promises of repairing your roof at no cost to you. Meaning they waive the deductible and file the rest with your insurance company. Then you submit proof of repairs to get your RCV hold out back, but fail to mention no deductible was paid.  While this may sound great when this happens, you as the homeowner are committing insured fraud.  Moreover, insurance carriers are onto it.  

Doesn’t sound so great anymore, does it?  

Enter the No Waving of Deductibles Bill: Texas HB2102 

To combat the waiving of deductibles t86th Texas Legislature and signed into law in June by Governor Abbott is designed to cure or at least curb the above abuses. The new law, entitled Payment of Insurance Deductible, goes into effect September 1, 2019, and will be located in Chapter 707 of the Texas Insurance Code. The first full paragraph states: “A person insured under a property insurance policy shall pay any deductible applicable to a first-party claim made under the policy” See Tex. Ins. Code §707.002. This has always been the law but has been ignored and not enforced. 

Under the new law, it is a violation of the law if the contractor does any of the following: 

Pays for 

Waives 

Absorb 

Rebate 

Credits or Offsets or 

Otherwise assists the insured in any other manner in avoiding monetary payment of the required insurance deductible. Or provides a good or service knowing that the insured will pay for the good or service with the proceeds of a claim under the policy and without the insurer’s consent to do so. 

The new law constitutes a Class B misdemeanor offense of 180 days in county jail and a fine of up to $2000, for (1) a business who sells goods or services to provide such a good or service in such a prohibited manner (violating contractor), (2) an insured (policyholder) who commits an offense if the person, in connection with a first-party claim knowingly submits or allows a claim to be submitted in violation of subsection c, (the violation section directly above) unless the insured person promptly notifies the insurer of the violation. 

You can read more about the new law here.  

Do Your Homework 

Always, always research any contractor before allowing them to work on your home. If it sounds too good to be true, it probably isn’t true. Make sure your roofer is RCAT Licensed and fully bonded and insured. If you need help to find a reputable contractor, please give us a call, and we will be happy to help.