Effective date: September 1, 2019
The insurance industry refers to causes of property damage as perils. Most homeowner’s insurance policies are structured with “all peril” coverage and are packaged with an “extended coverage” clause that covers hail and wind, the two most common perils leading to roof replacement. With this type of policy, a single deductible amount applies to all covered damages.
You may have heard of roofing contractors paying for customers’ deductibles or offering discounts or allowances to offset deductibles. Industry experts discourage this kind of incentivizing, and in some states the practice is illegal. As a general rule, information about your deductible and your insurance policy rules should remain between you and your insurer, and contractors should not pay a homeowner’s deductible.
Texas House Bill 2102 requires roofers to include boldfaced language in their contracts stating that homeowners must pay the deductible under their property insurance policy. The law makes it a criminal offense for a roofing contractor to pay for, waive, absorb, rebate or offset an insurance deductible. An insured policyholder also violates the law if they knowingly submit or allow a claim with a waived or reduced deductible.
With Prosperity Roofing and Construction TX LLC:
*deductibles do not count toward extras, please consult contractor for specifications