Homeowners insurance protects your home from damage due to covered losses to provide the funds needed to get repair work done.
Though the homeowner is required to pay the deductible as specified in their policy, the rest is paid by the insurance company.
Yet there are roofing contractors out there who offer to waive your out-of-pock deductible in an attempt to undercut qualified contractors who handle losses with a homeowners insurance agencyby policy guidelines.
It might sound like a deal, but it’s really not - and it is illegal to do just that in the state of Texas.
The Trickery Of Waived Deductibles
Not having to pay your deductible for roofing repairs may sound like a really great idea; however, deals like that usually have problems later on.
Homeowners insurance services find that many times contractors who make these deals use a bait-and-switch tactic, giving a lot less than what the homeowner should receive.
These unscrupulous contractors appear to work with insurance companies by providing estimates as requested and they certainly take the insurance payment; however, there is frequently trickery involved in the transaction.
The deductible is absorbed, padded somewhere into the work estimate so the insurance company approves and pays the bill; yet the work and materials delivered are often subpar.
Homeowners receive shoddy workmanship and cheap materials that do not last rather than the skilled installation and quality materials on the estimate sent to the insurance company for payment.
It's done as a way to get paying jobs without much regard for the product and services being provided which in turn takes work away from other local experienced contractors because the price tag is so low.
Why Does It Matter?
This type of fraud against insurance companies affects everyone through rising insurance costs.
Though the homeowner may have gotten away with not paying their deductible, there is a good chance the homeowners roof will not last very long and end up being another insurance claim in a few years.
When homeowners insurance agencies pay twice for work and materials that should have lasted after the original roof work, everybody loses.
Changes to the Texas Insurance Code
Due to the prevalence of this type of fraud in Texas that has high rates of homeowners insurance repair claims from weather-related damage, laws pertaining to this practice were recently changed.
In October 2019, the Texas Insurance Code was modified to state that proof of payment of the homeowner’s deductible is now required before an insurance company makes any kind of payment for repairs.
Additionally, the Texas Business and Commerce Code was modified to state that contractors must include this notice on their work contracts and it is a violation of the code for any contractor to say they will partially or fully pay any deductible owed by the homeowner.
In doing so, these changes have reduced the incentive for unethical contractors.
Hire An Experienced and Trustworthy Roofing Contractor
As insurance costs continue to rise in all sectors, homeowners insurance services understand that it’s normal for homeowners to look at ways to avoid paying an expensive deductible on top of their homeowners premium.
It is vital that homeowners realize hat cutting deals with fly-by-night contractors offering to pay deductibles then don't provide good work in return only costs consumers and insurance companies more in the long run.
Avoid falling for this trap by dealing with your homeowners insurance company who can help you find qualified and experienced roofing contractors who will deliver a quality repair job - and expect you to pay your deductible!
Need Homeowners Insurance in College Station Texas?
Contact Jones & Associates - Homeowners Insurance Specialists!
Call (979) 599-7532 For More Info!