What YOU Need to Know About the Texas Deductible Law

Have you heard about the Texas deductible law and been wondering, “Who do I pay my home insurance deductible to?” or if you even need to pay your deductible at all. If so, you are not alone.The Texas roofing laws surrounding homeowners insurance have been confusing people for years.

HB 2102 went into effect in 2019 and this Texas deductible law, requires ALL Texas homeowners to pay their homeowner’s insurance deductible.

The Texas deductible law does allow you, as a homeowner, to pay your deductible in installments, but even paying in installments can still be overwhelming if you don’t have the funds to cover the payments following a disaster.

You have financing options with Elevated Roofing, so you can exhale now. We’ll help you through this process and we will help you understand it.

What is the Texas Deductible Law?

Here are the nuts and bolts of the Texas deductible law that Texas Governor Greg Abbott signed on June 14, 2019. Homeowners, such as yourself, in North Texas, can no longer take advantage of a “Free Roof.” And while at first, that may feel like a negative thing, it actually protected many homeowners.

It had become common practice for roofing contractors to offer to waive your deductible to help you get a new roof due to hail or wind damage. Even though this has technically been illegal in Texas since 1989, the statute was not well written so there was little enforcement. The 2019 Texas deductible law made enforcement possible.

What Does This Mean for YOU, the Homeowner?

How does the Texas deductible law affect the roofing contractors you will be working with? Under the Texas roofing laws, any roofing contractor who offers to waive your deductible on your property insurance could face criminal charges. So, roofers are now required to state in their contract in boldface language that you must pay the deductible under your property insurance policy.

In fact, thanks to Texas roofing laws, it’s a criminal offense for any roofing contractor in the state to do the following for you:

• Pay your insurance deductible;
• Waive your insurance deductible;
• Absorb your insurance deductible;
• Rebate your insurance deductible; or
• Offset your insurance deductible.

If you knowingly submit or allow a claim to be submitted with a waived or reduced deductible, YOU, as an insured policyholder are also in violation of the law.

The Texas Deductible Law Actually Protected Homeowners

The good news, though, is that the Texas deductible law that went into effect in 2019 actually ended up protecting many people from becoming victimized by the storm chasing, pop-up roofing companies that blow through town almost as fast as the damaging storm did. There are an onslaught of roofers that go door-to-door after Texas storms that are not accredited and may leave you with sub-par work, or even a partially completed roof.

How Does This Law Work for the Insurers?

The Texas roofing laws even affect the way your insurance company handles your claim. Because of the Texas deductible law, your insurer may refuse to pay a claim for withheld replacement cost holdback until they receive reasonable proof that you’ve paid your deductible. Your insurer can ask for the following as proof you’ve paid your deductible:

• Canceled checks,
• Money order receipts,
• Credit card statements,
• Copy of an executed installment plan contract, or
• Another type of financing arrangement to pay the full deductible over time.

While this may seem like an extreme measure, this new law is to better help protect YOU from being taken advantage of, by disreputable contractors, who botch roof jobs that cost you more money over time and take your insurance money and leave you without completing your roof in an acceptable manner.

Texas Roofing Laws FAQs

Do I pay my deductible to my contractor?

In Texas, you must pay your contractor the deductible. Make sure that you get a receipt as proof that you have paid your deductible. You don’t owe the money to the insurance company, you owe it to the roofing company.

My insurance company hasn’t sent me a bill to pay my deductible, so who do I pay my home insurance deductible to?

The deductible isn’t an amount that you owe the insurance company. It’s the amount that you must pay the roofer. Meanwhile, your insurance company will pay the rest of the costs on your claim.

Can’t my roofing company give me a rebate that is equal to my deductible to get around this law?

No. Roofers can’t provide you with a rebate for your deductible. Actually, the Business and Commerce Code in Texas actually prohibits any kind of rebating of a deductible.

How much is an insurance deductible in Texas?

The actual amount of the deductible isn’t decided as a flat rate by the State of Texas, it’s determined by the insurance policy that you chose to cover your home. Most likely, your insurance policy’s deductible is at least 2% of the coverage on your home. So, if you have a policy with $300K dwelling coverage, and a 2% deductible, your deductible would be $6K.

In Texas for wind and hail, the deductible will be expressed as a percentage. And unfortunately, the DFW metroplex is seeing the largest rate increases too. This is one benefit of working with a professional roofing company that can offer fair financing options, like Elevated Roofing.

We at Elevated Roofing, are Here to Help!

Here at Elevated Roofing, we know it is not an option to ignore the damage to your roof and hope that it doesn’t get worse. And attempting to get a lower deductible from your insurance company means you’ll have to pay a higher premium. In our efforts to best serve our customers and community, we have secured a partnership with BTK Credit to help you spread your deductible over time at 0% interest.

What this partnership means to our customers, is that we are able to repair or replace your roof, while giving you an opportunity to pay back your deductible over time. BTK Credit lets you to complete a credit application for approval to set up the installment agreement. You can choose from a 12, 24, 36, 48, or 60-month term loan. For more information, or to complete a loan application, please visit www.btkcredit.com.

Feel Free to Contact Us

If you still have any questions, please allow us the opportunity to serve you. We will be happy to explain the effects or the new law in more detail, or answer any of your questions that you may have. We are one of the top premier roofing companies in the DFW area, with over 40 years of experience. Don’t just take us at our word, see our reviews here. We would love the opportunity to serve you and your family. Contact Us.