RCC Houston is your best source for Roof Repair and we do it right.
When it comes to roof repair and working with insurance companies it pays to work with experienced and professional companies that abide by the Texas law. When you are selecting the company you want to work with at this difficult time – you should ensure that everything is done proper and by the book. RCC HOU is your partner in Roof Repair / Replacement and Remodeling and a by the numbers insurance compliant business.
Free insurance claim work for roofing services is illegal in Texas?
A new Texas law (HB 2102) is in effect as of 9/1/19 that requires homeowners to pay the full insurance deductible they agreed to pay in their property insurance policy. Circumventing this policy portion is illegal in Texas.
The new law also makes it a class B misdemeanor (punishable by a jail sentence of up to 180 days + $2,000 fine) if a contractor pays, waives, absorbs, rebates, credits or otherwise declines to charge or collect a deductible.
This new law helps protect consumers from practices some contractors employed, which often involved cutting corners on a customers roof (to make up the difference for the waved deductible they absorbed) and often caused homeowners to unknowingly commit insurance fraud (a misdemeanor to a felony based on amount).
According to the new law, you are required as a homeowner to pay the insurance deductible in full
The waiving of deductibles has been improper in Texas since 1989. Unfortunately, due to a 1990 opinion by the Attorney General (when deductibles were much lower than today), many contractors ignored the prohibition and the waiving of deductibles (which often required insurance fraud) became common in Texas.
The NEW LAW, HB 2102, makes a policyholder’s payment of their insurance deductible REQUIRED and makes it a Class B misdemeanor if a contractor pays, waives, absorbs, rebates, credits or otherwise declines to charge or collect a deductible. Insurance companies will have the right to request reasonable proof that the deductible has been paid before making a payment. Many insurance companies, but not all, previously required this proof.
This new law will help protect consumers by helping to eliminate shady “free roof” practices many contractors employed, which often led to consumers unknowingly participating in insurance fraud and contractors cutting important corners to make up the difference (a practice that led many contractors to go out of business, leaving their customers in the lurch).
If a roofing company’s sales pitch offers to bypass this law (or their contract does not include the new required language), that is a RED FLAG. If they’re willing to break the law, what other rules and codes are they willing to ignore?
After a major storm, contractors – including some scam artists – are quick to arrive on the scene. This leads to shoddy repairs, fake contracts, and other problems. The Texas Department of Insurance created a special fraud unit that meets with local officials after a disaster and explains steps they can take to protect residents from contractor scams.
One selling point bad contractors often use is offering to waive or absorb the homeowner’s deductible. The contractor then cuts corners, uses lower quality products, or inflates the bill sent to the insurance company to cover the difference.
It is illegal for contractors or roofers to offer to waive a deductible or promise a rebate for all or part of a deductible. Under the new law effective September 1, violators could get up to a $2,000 fine and up to six months in jail.
If a contractor offers to waive a deductible, report it to the Texas Attorney General’s Consumer Protection Hotline at 1-800-621-0508.