Do I have to pay my deductible on a roof insurance claim in Texas?
Yes. Texas Insurance Code chapter 707 makes it illegal for a contractor to pay, waive or rebate any part of a homeowner’s insurance deductible. The deductible is your share of the loss under your policy, and you are responsible for paying it.
What the deductible is
Your deductible is the part of a covered loss that you agreed to pay when you bought your policy. In exchange, your premium is lower.
Many Texas homeowner policies use a percentage deductible for wind and hail instead of a flat amount, often one or two percent of the dwelling coverage. On a home insured for $300,000, a two percent wind and hail deductible is $6,000.
It is a good idea to check your deductible on your declarations page before a storm, since it affects whether a smaller claim is worth filing.
Why Texas law prohibits waiving it
When a contractor covers a deductible, the bill sent to the insurance company has to be raised by the same amount. That is insurance fraud, and Texas law treats it as an offense.
A contractor being paid from insurance proceeds is also required to state in the contract that you are responsible for paying your deductible.
Managing the cost
It is fine to talk with your roofer about the cost of the job. Payment schedules and phasing the work are normal and legal.
If the deductible is hard to afford, talk through what needs to be done now and what can wait.
Frequently Asked Questions
What if a roofer offers a discount equal to my deductible?
That is treated the same as waiving the deductible. A real discount applies to the price of the job whether or not there is an insurance claim.
Can I pay the deductible over time?
Payment arrangements are between you and your contractor. What matters is that the deductible is paid.
Is the deductible taken out of the insurance check?
Yes. The insurance company pays the covered loss minus your deductible, and you pay the deductible to your contractor.
