Is it OK for a contractor to waive my deductible?

No. A deductible is part of your home insurance policy — it’s your responsibility, and it’s illegal for a contractor to waive it or help you avoid paying it.

How would a contractor help me avoid paying a deductible?

One way: the contractor gives you an estimate that’s higher than the actual cost to repair your home or roof. Then the contractor uses the extra amount paid by the insurance company to cover your deductible. Some contractors might offer rebates or credits equal to your deductible. That’s also illegal.

What’s the harm?

• By promising to waive your deductible, a contractor may be submitting false information to your insurance company — that’s insurance fraud.

• A contractor offering to waive your deductible may need to compensate for the waived amount, which can mean cutting corners, using lower-quality materials, or otherwise delivering sub-standard work.  

• As the homeowner, you may become exposed to legal or financial risks, including your insurance claim being delayed or denied. 

How will my insurance company know if I paid my deductible?

Insurance companies can request proof that you, the homeowner, paid your deductible before they will pay the full claim amount. Evidence might include a canceled check, money-order receipt, credit-card statement, or contractor payment plan. 

How can I protect myself?

• Use a local, credible company. Verify the contractor’s local address and phone number. 

• Ask for references — check them and also look online to determine whether the contractor has complaints or negative reviews. 

• Be wary of contractors who go door-to-door looking for business, especially right after a storm.  

• Get more than one bid. If one bid is dramatically lower than the others, that may signal risk. 

What should I do if a contractor offers to waive my deductible?

First, talk to your insurance company. Then you may report the contractor’s practices. In Texas, you can call the Texas Attorney General’s Office Consumer Protection Hotline at 800-621-0508. 

Questions? Call us at 832-930-9863.