Do I have to pay my deductible on a roof insurance claim in Texas?
Yes. Texas Insurance Code chapter 707 makes it an offense for a contractor to pay, waive, rebate or absorb any part of your insurance deductible, and it is also an offense for a homeowner to agree to it. If a roofer offers to cover your deductible, you should not accept.
What a deductible is
Your deductible is the part of a covered loss that you pay yourself. You chose it when you bought your policy, and a higher deductible usually means a lower premium.
Many Texas homeowner policies use a percentage deductible for wind and hail instead of a flat amount, commonly one or two percent of the dwelling coverage. On a home insured for $400,000, a two percent wind and hail deductible is $8,000.
You can find your deductible on the declarations page of your policy. It is a good idea to check it before a storm, because it affects whether a smaller claim is worth filing.
Why Texas law prohibits waiving the deductible
If a contractor absorbs the deductible, the bill sent to the insurance company has to be raised by the same amount to cover it. That is insurance fraud, and Texas law treats it as an offense.
The law also requires a roofer who is paid from insurance proceeds to state in the contract that you are responsible for paying your deductible. If a contract does not include that statement, ask about it before you sign.
Legal ways to manage the cost
It is fine to talk with a roofer about managing the cost of a project. Payment schedules and financing are legal and common.
If the deductible is hard to afford, talk with your roofer about what needs to be done now and what can wait.
Related questions
What if the roofer offers a discount equal to my deductible?
A discount that exists only to cover the deductible is treated the same way under the law. A real discount applies to the job price whether or not there is an insurance claim.
Can I pay my deductible over time?
A payment schedule is between you and your contractor and is perfectly legal. The deductible still has to be paid.
Does the deductible come out of the insurance payment?
Yes. Your insurance company pays the covered loss minus your deductible, and you pay the deductible to the contractor.
