HB 2102...Homeowners to Pay Full Roof Replacement Deductible (Howe: sales, insurance)

[CREW747]

This is great...

“North Texas homeowners can no longer take advantage of a “free roof” under a new law that goes into effect Sept. 1.Under Texas House Bill 2102 approved in the most recent legislative session, roofing contractors who offer to waive a homeowner’s deductible on their property insurance policy could face jail time.”

[Hemlock140]

Just for fun I read the law, and while it appears to be fixing a loophole that permits "insurance fraud" it's really just to prevent the loss of sales tax money on that $2,000 average deductible.

[tmtex]

Glad I just got mine done

[jbb303]

Very few roofers allow this to happen anymore. If they do, you probably don't want the quality of work you're getting.

[stan4]

It is insurance fraud and I'm glad they are finally prosecuting it.

[escanlan]

Nothing and no service worth having is "Free". The roofers who used this ploy certainly made sure their contracts covered them from being nailed for insurance fraud. Some if not most even failed to properly perform the job or used other than acceptable materials and methods for the job or substituted cheaper materials all in an effort to defray that insurance deductible they supposedly absorbed.



These "Free" roof jobs only placed the consumer directly in the crosshairs for insurance fraud charges and this law does nothing more than prevent that.

[bigbear63]

Some of the contracts I've read state they will pay me an advertising fee for placing their sign in my yard for 30 days. That is certainly legal and none I have dealt with offer "free" (aka deductible waive).

So I ask this: If I find a roofer to do the job cheaper than what the insurance paid me, is that fraud?

[escanlan]

Originally Posted by bigbear63

Some of the contracts I've read state they will pay me an advertising fee for placing their sign in my yard for 30 days. That is certainly legal and none I have dealt with offer "free" (aka deductible waive).

So I ask this: If I find a roofer to do the job cheaper than what the insurance paid me, is that fraud?

That is a question you should ask your insurance provider/Agent. However keep in mind that insurance underwriters are not in a habit of paying out more than it actually costs to replace what is currently there and damaged. If anything they would be on the lesser cost side. They have fairly accurate cost guides they use. If you are talking a few dollars below what the underwriter pays out then that is entirely possible. If you're talking hundreds below what the insurance company is quoting as replacement cost then you should closely check what that roofer is actually going to do and what materials they plan to use.


Advertising fees are not uncommon for placing signs in your yard but they are not necessarily large amounts. If it is a large amount again you need to be careful they are not trying to hide the "Free Roof" concept inside their "Advertising Fee" program. It will all wash out the same and you do pay for it in the end.

[pharpe]

It's not insurance fraud unless you are somehow falsifying the damage. If you have legitimate damage to your roof, an agent for your insurance comes out determines its covered and calculates a settlement they have complete control of the process. How are they defrauded? The "no deductible" isn't money that the insurance is losing. It's the contractor discounting their service by the amount of the deductible. There is legitimate argument that the quality might be sub par if the contractor is cutting the price but it's not insurance fraud.

[SouthernBelleInUtah]

It has always been that way. They cut costs somewhere to give you the deductible. Don't fall for a scam, find an honest roofer.