Do I REALLY need to pay my Deductible?

Deductible Dilemma: Debunking the Need-to-Pay Conundrum

When it comes to repairing or replacing a roof, homeowners often wonder why they have to pay a deductible. And rightfully so. I mean, you’re paying your insurance premiums, why pay the deductible too? There are a couple of reasons, first and foremost being that in Texas, it is required by law that homeowners pay their insurance deductible when making a claim for roof damage. In this blog post, we will explain why people have to pay their deductibles in Texas and the consequences of not doing so. We will also provide some tips for homeowners to help them understand their insurance policies and navigate the claims process.

Why Do People Have to Pay Their Deductibles in Texas?

Texas passed HB 2102 back in 2019, which prohibits roofing contractors from waiving or absorbing insurance deductibles for homeowners. This means that homeowners are legally required to pay their insurance deductibles when making a claim for roof damage. Texas Department of Insurance has also posted content talking about this. You can find their article here.

The purpose of this law is to prevent insurance fraud and protect homeowners from unscrupulous roofing contractors who may offer to waive or absorb the deductible in exchange for the homeowner’s business. By requiring homeowners to pay their deductibles, the law ensures that insurance companies are not overcharged for repairs or replacements and that the homeowner is not put at risk of insurance fraud.

Consequences of Not Paying Your Deductible:

If a homeowner does not pay their insurance deductible, it can have serious consequences. First and foremost, it is illegal to not pay your deductible in Texas, and failure to do so can result in legal and financial consequences. There are also task forces set up with Texas Department of Insurance who routinely search for contractors that participate in this activity. If a roofing contractor gets popped, their is a chance that all of their past business will be investigated resulting in a fine for each occurrence for both the contractor and the homeowner.

Additionally, if a homeowner does not pay their deductible, the insurance company may deny the claim or reduce the amount of the payout. This means that the homeowner may be responsible for paying for some or all of the repairs or replacement costs out of pocket.

Legality aside, you should also understand that insurance companies do not make profits by writing checks. They do not pay more than a job is worth. The job costs what it costs. Your deductible makes up a portion of the total amount of the job, so when a contractor doesn’t collect the full payment, do you honestly think he is going to sacrifice his profits? Well, of course he is going to sacrifice some of his profits, but not primarily. He’s primarily going to sacrifice quality….on YOUR roof. Now, since some of his profits also go out the window when he doesn’t collect, do you think he is running a long term sustainable business? No. Not only will he be put out of business when he gets caught, but he will also be put out of business by not being a profitable business.

Tips for Homeowners:

To help homeowners navigate the insurance claims process and understand their insurance policies, here are some tips:

1. Read Your Policy: It is important to read and understand your insurance policy before making a claim. This will help you understand what is covered and what is not, as well as your deductible and other policy details.
2. Choose a Reputable Roofing Contractor: Choose a roofing contractor who is certified and insured, and who has a good reputation in the community. A reputable contractor will not offer to waive or absorb your deductible, as this is illegal in Texas.
3. Document Everything: Keep detailed records of all communication with your insurance company and roofing contractor, including emails, phone calls, and contracts. This will help you if there are any disputes or issues that arise during the claims process.
4. CALL DAVIS ROOFING SOLUTIONS: While we are not insurance adjusters, and are therefore limited on what we can talk about when it comes to insurance policies, we are absolutely experts in dealing with insurance companies and will do our very best to help you in this stressful time, while staying fully within our legal abilities.