UPDATE ON TEXAS LAW Relating to the Payment of Insurance Deductibles Related to Property Insurance Policies; Creating a Criminal Offense
Summary Bill Passed 6/14/19 – WHAT THIS MEANS FOR YOU, THE HOMEOWNER:
- Payment of Deductible IS Required by the homeowner per Texas Law
- The homeowner CANNOT accept a “rebate, credit, discount or allowance” to offset any part of your deductible.
- Insurance has the right to request Proof Of Deductible payment from you and/or your contractor prior to issuing all insurance funds owed.
- The homeowner AND contractor can be prosecuted under any violation of this act – it is Insurance Fraud.
What if a contractor says they will waive or put my roof on without paying a deductible?
It is considered FRAUD. Period. It is against the law and both the contractor and the homeowner can be held liable.
Why would one bid be less than another?
The insurance company is getting the customer to do the shopping for THEM, not the homeowner. This can present a problem because the cheaper contractor is not always the best option. Contractors often lower their bid to compete with other bids to win the job. The problem is this usually results in the contractor being less attentive to detail, use low quality materials and the company not being around for your next roofing concern. When you get multiple bids and choose the least expensive one, the insurance company is the winner because they are the only ones saving money, not the homeowner.