ARTICLE
Spring in Texas means one thing for homeowners: storm season. It also means an increase in out-of-town contractors knocking on doors, promising fast roof replacements and “no deductible” deals. If a contractor offers to “waive,” “cover,” or “eat” your insurance deductible, you are not getting a great deal. You are putting yourself at serious financial and legal risk. Texas law requires homeowners to pay their insurance deductibles. There are no exceptions. This guide explains how deductible waiving works in practice, why it harms homeowners, and what you need to understand before signing a contract. Texas Law Requires Homeowners to Pay Their Insurance Deductibles Under Texas law, homeowners are responsible for paying their insurance deductibles. Any contractor who tells you they can cover it for you is involving you in an illegal activity. The contractor is not the only one at risk. You are under contract with your insurance company. If false information is submitted as part of your claim, you can be held legally responsible. Depending on the amount involved, violations can result in: • Criminal misdemeanor charges • Felony charges • Civil penalties • Claim denial or cancellation • Difficulty obtaining insurance in the future How Deductible Waiving Actually Works Reality Check: No contractor can afford to give away thousands of dollars for free! Roofing is a business with fixed costs, labor expenses, material pricing, and overhead. If someone says they will cover your deductible, they must make up that money somewhere. Here is how it often works in practice: • The contractor inflates the invoice to the insurance company • They charge for work not performed • They reduce material quality • They use uninsured or underqualified crews • They cut corners during installation • They reuse stolen materials • They skip necessary components For example: If your insurance company approves $10,000 for your roof and your deductible is $2,000, the contractor may structure the job so their real cost is $8,000. The “extra” amount is then used to offset your deductible. Nothing is free. If money is shifted around, it is shifted from somewhere. That “somewhere” is usually the quality of your roof or the accuracy of your insurance claim. Why This Puts Homeowners at Risk Homeowners often believe this is strictly a contractor issue. It is not. When false invoices, inflated estimates, or misleading documentation are submitted to your insurance company, your name is on that claim. Possible consequences include: • Your claim being denied • Your policy being canceled • Being required to repay funds • Civil lawsuits • Criminal investigation Even if the contractor prepared the paperwork, you are still responsible for the accuracy of the claim. Ignorance does not eliminate liability. If They Break the Law Here, Where Else Are They Cutting Corners? This is the most important question. If a contractor is willing to expose you to legal risk just to win the job, what else are they willing to do? Consider the possibilities: • Are they properly insured? • Are their crews covered by workers’ compensation? • Are they following manufacturer installation guidelines? • Are they complying with building codes? • Are they pulling required permits? A contractor who builds their business model on illegal deductible schemes is not prioritizing professionalism. They are prioritizing volume and quick profit. Your home deserves better. Common Myths Homeowners Hear Here are some statements often used to justify deductible waiving. “We’ll just discount something on the back end.” Discounting legitimate work to offset a deductible is still structured to avoid your legal obligation. “Everyone does it.” Not reputable contractors. “If you don’t take this deal, you’re losing money.” Paying your deductible is not losing money. It is fulfilling your contractual obligation under your insurance policy. What Homeowners Should Do Instead If your roof has storm damage: • File your claim honestly • Review your insurance estimate carefully • Pay your deductible directly • Work with a contractor who provides transparent pricing Ask contractors directly: • Do you require homeowners to pay their deductible? • Will your invoice match the work performed? • Are you fully insured? • Can you provide proof of insurance? Reputable contractors will answer these questions clearly. How RCAT Helps Protect Texas Homeowners Texas does not license roofers at the state level. That makes consumer education critical. RCAT exists to promote higher standards and ethical practices within the roofing industry. RCAT Supports Homeowners By: • Promoting ethical roofing practices • Educating consumers about storm-related risks • Providing access to vetted member contractors • Offering a voluntary licensing program for roofing professionals RCAT members commit to higher professional standards and ethical business practices. Choosing an RCAT member reduces your risk during storm season. RCAT Consumer Resources: https://www.rcat.net/consumers.html Final Takeaway for Homeowners There is no such thing as a free deductible. If a contractor offers to waive it, you are not getting a deal. You are accepting legal exposure, financial risk, and potentially a lower-quality roof. Storm season creates urgency. Shady contractors rely on that urgency. Slow down. Ask questions. Protect yourself. To find reputable roofing contractors who follow ethical standards, use the RCAT Contractor Search tool: https://web.rcat.net/rcat/search Texas Law References Texas Business and Commerce Code Title 3. Insolvency, Fraudulent Transfers, and Fraud Chapter 27. Fraud https://statutes.capitol.texas.gov/Docs/BC/htm/BC.27.htm#27.02 Texas Penal Code Title 7. Offenses Against Property Chapter 35. Insurance Fraud https://statutes.capitol.texas.gov/Docs/PE/htm/PE.35.htm
Spring in Texas means one thing for homeowners: storm season.
It also means an increase in out-of-town contractors knocking on doors, promising fast roof replacements and “no deductible” deals.
If a contractor offers to “waive,” “cover,” or “eat” your insurance deductible, you are not getting a great deal.
You are putting yourself at serious financial and legal risk.
Texas law requires homeowners to pay their insurance deductibles. There are no exceptions.
This guide explains how deductible waiving works in practice, why it harms homeowners, and what you need to understand before signing a contract.
Under Texas law, homeowners are responsible for paying their insurance deductibles.
Any contractor who tells you they can cover it for you is involving you in an illegal activity.
The contractor is not the only one at risk.
You are under contract with your insurance company.
If false information is submitted as part of your claim, you can be held legally responsible.
Depending on the amount involved, violations can result in:
• Criminal misdemeanor charges • Felony charges • Civil penalties • Claim denial or cancellation • Difficulty obtaining insurance in the future
Reality Check: No contractor can afford to give away thousands of dollars for free!
Roofing is a business with fixed costs, labor expenses, material pricing, and overhead.
If someone says they will cover your deductible, they must make up that money somewhere.
Here is how it often works in practice:
• The contractor inflates the invoice to the insurance company • They charge for work not performed • They reduce material quality • They use uninsured or underqualified crews • They cut corners during installation • They reuse stolen materials • They skip necessary components
For example:
If your insurance company approves $10,000 for your roof and your deductible is $2,000, the contractor may structure the job so their real cost is $8,000. The “extra” amount is then used to offset your deductible.
Nothing is free.
If money is shifted around, it is shifted from somewhere.
That “somewhere” is usually the quality of your roof or the accuracy of your insurance claim.
Homeowners often believe this is strictly a contractor issue.
It is not.
When false invoices, inflated estimates, or misleading documentation are submitted to your insurance company, your name is on that claim.
Possible consequences include:
• Your claim being denied • Your policy being canceled • Being required to repay funds • Civil lawsuits • Criminal investigation
Even if the contractor prepared the paperwork, you are still responsible for the accuracy of the claim.
Ignorance does not eliminate liability.
This is the most important question.
If a contractor is willing to expose you to legal risk just to win the job, what else are they willing to do?
Consider the possibilities:
• Are they properly insured? • Are their crews covered by workers’ compensation? • Are they following manufacturer installation guidelines? • Are they complying with building codes? • Are they pulling required permits?
A contractor who builds their business model on illegal deductible schemes is not prioritizing professionalism.
They are prioritizing volume and quick profit.
Your home deserves better.
Here are some statements often used to justify deductible waiving.
“We’ll just discount something on the back end.”
Discounting legitimate work to offset a deductible is still structured to avoid your legal obligation.
“Everyone does it.”
Not reputable contractors.
“If you don’t take this deal, you’re losing money.”
Paying your deductible is not losing money. It is fulfilling your contractual obligation under your insurance policy.
If your roof has storm damage:
• File your claim honestly • Review your insurance estimate carefully • Pay your deductible directly • Work with a contractor who provides transparent pricing
Ask contractors directly:
• Do you require homeowners to pay their deductible? • Will your invoice match the work performed? • Are you fully insured? • Can you provide proof of insurance?
Reputable contractors will answer these questions clearly.
Texas does not license roofers at the state level.
That makes consumer education critical.
RCAT exists to promote higher standards and ethical practices within the roofing industry.
RCAT Supports Homeowners By:
• Promoting ethical roofing practices • Educating consumers about storm-related risks • Providing access to vetted member contractors • Offering a voluntary licensing program for roofing professionals
RCAT members commit to higher professional standards and ethical business practices.
Choosing an RCAT member reduces your risk during storm season.
RCAT Consumer Resources: https://www.rcat.net/consumers.html
Final Takeaway for Homeowners
There is no such thing as a free deductible.
If a contractor offers to waive it, you are not getting a deal.
You are accepting legal exposure, financial risk, and potentially a lower-quality roof.
Storm season creates urgency.
Shady contractors rely on that urgency.
Slow down. Ask questions. Protect yourself.
To find reputable roofing contractors who follow ethical standards, use the RCAT Contractor Search tool: https://web.rcat.net/rcat/search
Texas Business and Commerce Code Title 3. Insolvency, Fraudulent Transfers, and Fraud Chapter 27. Fraud https://statutes.capitol.texas.gov/Docs/BC/htm/BC.27.htm#27.02
Texas Penal Code Title 7. Offenses Against Property Chapter 35. Insurance Fraud https://statutes.capitol.texas.gov/Docs/PE/htm/PE.35.htm