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When storm season hits and roofs get damaged, insurance claims are never far behind. For roofing contractors in Texas, knowing your role and staying within it isn’t just best practice. It’s required by law. This guide explains the major players in the insurance claim process and outlines what Texas contractors need to know to avoid fines, stay compliant, and protect both clients and business operations. Understanding the Key Players in Insurance Claims Insurance Adjuster Insurance adjusters are employees or representatives of insurance companies. Their job is to inspect damage, assess the value of a claim, and determine what is or is not covered by the policy. What They Do: Inspect storm or property damage Review the policy for coverage Estimate repair or replacement costs Report findings back to the insurance company Contractor's Role: Permissible: Attend inspections Provide documentation, photos, and estimates for work Discuss scope of work as a contractor Prohibited: Speaking on the homeowner’s behalf Interpreting policy terms or determining what is covered Negotiating the claim payout with the insurance company Reminder: Interpreting policy details or communicating directly with the insurer about coverage can be a violation of Texas UPPA laws. Appraiser An appraiser is brought in when there is disagreement over the value of a claim, not the coverage itself. How It Works: The insurer and policyholder each appoint their own appraiser If the two cannot agree, a neutral umpire is selected The decision of two of the three is binding Contractor’s Role: Permissible: Submit supporting documents and accurate job estimates Prohibited: Serving as an appraiser without proper licensing Attempting to influence the appraisal outcome Unless you are hired specifically in a legal or licensed role, avoid participating directly in the appraisal process. Arbitration Arbitration is a formal process where a neutral third party reviews a dispute and delivers a final, binding decision. When It’s Used: Coverage disputes Denied or underpaid claims Allegations of bad faith by the insurer Contractor’s Role: Generally not involved: Contractors are not a party to the insurance policy Participation is only appropriate if specifically contracted or called as a witness Arbitration is a legal process. Unless you're directly involved as a party or professional witness, stay out of it. Legal Boundaries for Texas Roofing Contractors Texas law is very clear when it comes to what roofing contractors can and cannot do during the insurance claims process. Two major areas to pay attention to are the Unauthorized Practice of Public Adjusting (UPPA) and deductible waivers. Unauthorized Practice of Public Adjusting (UPPA) UPPA violations occur when a person who is not a licensed public adjuster or attorney acts on behalf of a policyholder during an insurance claim. Texas Law: Only licensed public adjusters or attorneys are allowed to: Negotiate or settle claims Interpret insurance policy language Communicate directly with insurers about claim decisions Common Contractor Violations: Telling homeowners what their policy does or does not cover Promoting “claim help” or “insurance negotiation” in advertising Contacting insurance companies directly to argue settlement amounts Including contract language that suggests you will “handle” the claim Consequences: Civil penalties and contract voiding Forced restitution to the customer In severe cases, criminal charges Even if you mean well, stepping into the claim process improperly can result in legal action against your company. Deductible Waivers: Illegal in Texas Texas House Bill (HB) 2102 Passed in 2019, this law prohibits contractors from waiving, rebating, or absorbing deductibles for any insurance-related repair. What the Law Requires: The homeowner must pay their deductible out of pocket Contractors must clearly state in contracts that deductibles are the customer’s responsibility Insurance carriers can withhold funds until they receive proof of deductible payment For Contractors, This Means: Do not: Offer to “cover” the deductible Raise your price to absorb it quietly Advertise phrases like “we work with your deductible” Do: Collect the deductible directly and show it on the invoice Make it clear in writing that the deductible is required by law Help educate the homeowner about the risks of deductible fraud Covering a deductible to win a job may seem harmless, but it can get your business in legal hot water very quickly. Best Practices for Texas Roofing Contractors Follow these key practices to stay safe, stay legal, and build long-term trust with your clients. Stay Within Your Role Focus on roofing services and accurate estimates Let adjusters and licensed professionals handle the claims process Do not give advice about coverage or claim decisions Educate the Homeowner Explain why public adjusters or attorneys are the only ones who can legally handle claims Help homeowners avoid potential violations by encouraging the right steps Provide support, but don’t try to lead the claim Clean Up Your Contracts Remove language that implies negotiation or insurance handling Clearly state that the deductible is due and must be paid Keep documentation simple and transparent Stay Informed Laws can change, especially around insurance claims Take part in continuing education and stay connected to roofing associations Ask a legal expert to review your contracts annually for compliance Protect Your Business and Your Clients Understanding the roles of insurance adjusters, appraisers, and arbitrators helps Texas roofing contractors avoid legal risk and better serve their customers. But more importantly, staying within your legal boundaries protects the reputation and future of your company. Do not negotiate claims. Do not waive deductibles. And never attempt to act on a homeowner’s behalf unless you are properly licensed to do so. When in doubt, refer the homeowner to a licensed public adjuster or attorney. Keep it classy, Texas! Protecting Contractors and Consumers Alike RCAT’s Government Relations Committee is actively engaged at the Capitol to protect the roofing industry from harmful regulations while promoting fair, consumer-focused legislation. Whether it’s defending your right to do business or ensuring homeowners are treated fairly, we’re committed to making your voice heard where it matters most. Learn more about our ongoing advocacy efforts and how we’re fighting for you: https://www.rcat.net/advocacy.html
When storm season hits and roofs get damaged, insurance claims are never far behind. For roofing contractors in Texas, knowing your role and staying within it isn’t just best practice. It’s required by law.
This guide explains the major players in the insurance claim process and outlines what Texas contractors need to know to avoid fines, stay compliant, and protect both clients and business operations.
Understanding the Key Players in Insurance Claims
Insurance adjusters are employees or representatives of insurance companies. Their job is to inspect damage, assess the value of a claim, and determine what is or is not covered by the policy.
What They Do:
Contractor's Role:
Permissible:
Prohibited:
Reminder: Interpreting policy details or communicating directly with the insurer about coverage can be a violation of Texas UPPA laws.
An appraiser is brought in when there is disagreement over the value of a claim, not the coverage itself.
How It Works:
Contractor’s Role:
Unless you are hired specifically in a legal or licensed role, avoid participating directly in the appraisal process.
Arbitration is a formal process where a neutral third party reviews a dispute and delivers a final, binding decision.
When It’s Used:
Generally not involved:
Arbitration is a legal process. Unless you're directly involved as a party or professional witness, stay out of it.
Texas law is very clear when it comes to what roofing contractors can and cannot do during the insurance claims process.
Two major areas to pay attention to are the Unauthorized Practice of Public Adjusting (UPPA) and deductible waivers.
UPPA violations occur when a person who is not a licensed public adjuster or attorney acts on behalf of a policyholder during an insurance claim.
Texas Law:
Only licensed public adjusters or attorneys are allowed to:
Common Contractor Violations:
Consequences:
Even if you mean well, stepping into the claim process improperly can result in legal action against your company.
Texas House Bill (HB) 2102
Passed in 2019, this law prohibits contractors from waiving, rebating, or absorbing deductibles for any insurance-related repair.
What the Law Requires:
For Contractors, This Means:
Do not:
Do:
Covering a deductible to win a job may seem harmless, but it can get your business in legal hot water very quickly.
Follow these key practices to stay safe, stay legal, and build long-term trust with your clients.
Understanding the roles of insurance adjusters, appraisers, and arbitrators helps Texas roofing contractors avoid legal risk and better serve their customers.
But more importantly, staying within your legal boundaries protects the reputation and future of your company.
Do not negotiate claims. Do not waive deductibles. And never attempt to act on a homeowner’s behalf unless you are properly licensed to do so.
When in doubt, refer the homeowner to a licensed public adjuster or attorney.
Keep it classy, Texas!
Protecting Contractors and Consumers Alike
RCAT’s Government Relations Committee is actively engaged at the Capitol to protect the roofing industry from harmful regulations while promoting fair, consumer-focused legislation.
Whether it’s defending your right to do business or ensuring homeowners are treated fairly, we’re committed to making your voice heard where it matters most.
Learn more about our ongoing advocacy efforts and how we’re fighting for you:
https://www.rcat.net/advocacy.html