Someone offers you a new roof and says you will not have to pay your insurance deductible. Before you sign, stop and check the offer. Texas law does not allow a roofer to waive, rebate or absorb that deductible.
The rule concerns the deductible on an insurance claim. A donated roof or a separate aid program is a different situation. The words “free roof” alone do not tell you how an offer works.
What is a deductible?
Your deductible is the amount you owe toward a covered loss. Check your policy to see whether it is a dollar amount or a percent of a stated coverage amount.
Here is a simple example. Assume covered repairs cost $10,000 and your deductible is $2,000. With no other limits or deductions, the insurer’s share would be $8,000. This is an example, not a quote or a promise about your claim.
You could owe more than the deductible if your policy leaves out part of the work. Ask your insurer to explain the payment before you plan your budget.
Two parts of Texas law apply
Texas Insurance Code Chapter 707 requires a property policyholder to pay the deductible. It also lets an insurer ask for reasonable proof of payment.
Texas Business and Commerce Code Section 27.02 addresses a contractor’s offer to waive or rebate it. This section also sets a required notice for certain contracts of $1,000 or more paid from an insurance settlement.
These are different rules. Do not assume that a homeowner and a contractor face the same charge in every case. False bills and false statements can raise other legal issues. Get legal advice if you are concerned about an agreement you signed.
Watch for a hidden rebate
Be careful if the offer says the roofer will “eat” your deductible or hide it in a larger bill. Ask for the actual price of the work and an accurate invoice.
Do not sign a blank contract. Do not agree to tell the insurer you paid money you did not pay. Keep a copy of your contract, bills and payment records.
A low price alone does not prove fraud. Compare the full scope, products and terms in each bid. Ask the contractor to explain anything that is unclear.
What if you cannot pay it all at once?
Tell the contractor before work starts. Ask whether a payment plan is available and read the full terms. You still owe the deductible; a loan does not erase it. Check the interest, fees and due dates.
Ask your insurer what proof of payment it needs. Chapter 707 lists examples, including a canceled check, credit card statement and certain signed financing agreements.
What can a roofer help with?
A roofer can inspect the damage, take photos and write a repair estimate. The insurer decides what the policy covers. The roofer cannot act as your public adjuster on the same job.
You can read more about these limits in TDI’s guide to roofing and insurance .
Check the offer before you sign
Get a written scope and payment plan. Check references and current proof of insurance. Ask who will handle a warranty call after the work is done.
To report an offer to waive a deductible, contact the Texas Attorney General’s Consumer Protection Hotline at 800-621-0508. For help with the roof itself, request an inspection from Cox Brothers Roofing or call (361) 277-0014.
Frequently Asked Questions
Can a roofer pay my insurance deductible?
Texas law bars a contractor from waiving, rebating or absorbing your deductible. You must pay it. Ask your insurer what proof it needs.
Will I only owe the deductible?
Not always. You may also owe for work your policy does not cover, upgrades or amounts removed for age and wear. Ask for a clear cost breakdown.
Is every offer of a free roof illegal?
The details matter. An offer to waive an insurance deductible is barred. A donated roof or separate aid program is not the same thing. Ask how the work will be paid for.
