Do I have to pay my deductible on a roof insurance claim in Texas?
Yes. Under Texas Insurance Code chapter 707, it is against the law for a contractor to pay, waive, rebate or absorb any part of your insurance deductible. If a roofer offers to cover your deductible, that is a red flag.
What a deductible is
Your deductible is the part of a covered loss that you agreed to pay when you bought your homeowners insurance policy. Your insurance company pays for the rest of the covered damage.
Many Texas homeowners policies use a percentage deductible for wind and hail damage instead of a flat amount, often one or two percent of your dwelling coverage. For a home insured for $300,000, a two percent deductible would be $6,000.
You can find your deductible on the declarations page of your policy. It is a good idea to check it before a storm, so you know what to expect.
Why the law exists
When a contractor covers a homeowner’s deductible, the cost usually ends up added to the bill sent to the insurance company. That is insurance fraud, which is why Texas law treats it seriously.
The law also requires a contractor who is paid with insurance money to state that the homeowner is responsible for paying the deductible. If your contract does not include that, ask about it.
Paying for your deductible
If you are worried about covering your deductible, talk with your contractor about payment options. Payment schedules and financing are normal and legal.
What is not legal is a contractor pretending the deductible was paid when it was not.
Frequently Asked Questions
Can a roofer give me a discount equal to my deductible?
No. A discount that is meant to cover your deductible is treated the same way under the law.
Can I pay my deductible over time?
That is between you and your contractor. Payment schedules are normal, as long as the deductible is paid.
Is the deductible taken out of my insurance check?
Yes. Your insurance company pays the covered loss minus your deductible, and you pay the deductible to your contractor.
