HB2102 – Prohibition Against Waiving of Deductibles

Back on September 1st, 2019 it became illegal to “make your deductible go away”. Now, to be clear the waiving of deductibles has been improper in Texas since 1989, but contractors have ignored the prohibition and made it a “thing” by claiming you get “a free roof”. That is in fact insurance fraud.

“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.”

Under the new law that came into effect September 1, 2019, violators to include policyholders and violating contractors could get up to 6 months in jail as well as a $2,000 fine.

If you think about it, are the contractors really waiving your deductible out of the kindness of their hearts? Most likely not, they in fact cutting corners. Take your business elsewhere and protect your investment.

When you are looking at hiring a contractor to fix your roof, make sure the deductible language is on the contract. This will ensure that you are following state laws and aware of what you have to pay to get your roof fixed the right way.

 

What is your responsibility?

Well the bill provides that clarification as well.

Sec. 707.002. PAYMENT OF DEDUCTIBLE REQUIRED. A person insured under a property insurance policy shall pay any deductible applicable to a first-party claim made under the policy.

Sec. 707.004. REASONABLE PROOF OF PAYMENT. An insurer that issues a property insurance policy with replacement cost coverage may refuse to pay a claim for withheld recoverable depreciation or a replacement cost hold back under the policy until the insurer receives reasonable proof of payment by the policyholder of any deductible applicable to the claim. Reasonable proof of payment includes a canceled check, money order receipt, credit card statement, or copy of an executed installment plan contract or other financing arrangement that requires full payment of the deductible over time

It is the insured’s responsibility to submit proof of a separate deductible payment. Deductible payment must be a separate payment and be the first payment collected.

Let’s talk for a minute about what is in your estimate. We have created a list below to help.

Inclusions

  • CertainTeed 3-tab or Dimensional Shingles
  • CertainTeed quality accessories:
  • Ridge cap shingles,
  • Starter strip shingles,
  • Leak barrier,
  • Roof deck protection,
  • Attic ventilation
  • Average local labor rates
  • Standard Limited Lifetime Shingle Warranty
  • Edge metals and flashing
  • One layer tear off
  • Clean up and disposal
  • Permits

Exclusions

  • Structures greater than 2 stories
  • Commercial properties
  • Roof deck replacement (partial or whole)
  • More than one layer tear off
  • Trim, siding and soffits

Are you unsure about your contractor? Here is a bit of information to help you make sure you choose the right one. https://tomlinroofing.com/5-questions-to-ask-your-roofing-contractor/