Deductible Fraud: What Texas Homeowners Need to Know

What Is Deductible Fraud?

Under Texas law (HB2102, effective September 1, 2019), it is illegal for a contractor to waive, absorb, or rebate a homeowner’s insurance deductible. Doing so constitutes insurance fraud, and both the contractor and homeowner can face serious legal consequences.

Learn more at DontFraudMyTexas.com

Why It Hurts You

Choosing a roofer who offers to “eat your deductible” may seem like a good deal, but here’s the truth:

• Cut Corners: These contractors often cut costs by skipping required materials, hiring unlicensed labor, or avoiding inspections.

• Voided Warranties: Improper installs due to fraud can void your manufacturer’s warranty.

• Legal Risk: Homeowners who knowingly participate may be held liable for insurance fraud.

What the Law Says

“It is a violation of Texas law for a contractor or roofing company to waive, absorb, rebate, or offset an insurance deductible.”
— Texas Insurance Code, Section 707

Violators can face Class B misdemeanor charges, fines, or even jail time. Insurance fraud in Texas can escalate to a felony depending on the amount involved.

Red Flags to Watch For

Be cautious of any contractor who:

• Promises a “free roof” or “no out-of-pocket cost”

• Offers to cover or waive your deductible

• Does not include the required deductible payment disclosure in your contract

• Requests you not report the full cost of repairs to your insurer

What You Should Ask For

When working with a reputable contractor like Summit Roofing, you should receive:

• A clear, detailed contract that includes the required deductible disclosure (in at least 12-point font)

• A legitimate invoice and receipts showing you paid your deductible

• Code-compliant materials and proper installation

• Warranty paperwork and photo documentation

How to Report Deductible Fraud

If you believe a contractor is committing insurance fraud by waiving deductibles:

• Report it to the Texas Department of Insurance

• Contact the Texas Attorney General’s Office

• Visit DontFraudMyTexas.com/report-fraud

You can report anonymously, and your actions can help protect other homeowners.

Why This Matters to Summit Roofing

At Summit Roofing, we believe in doing things the right way—every time. That means:

• We never offer to waive deductibles.

• We work directly with insurance adjusters to ensure proper coverage.

• We educate our clients on their rights and responsibilities.

• We deliver quality roofs with honesty, transparency, and code-compliant craftsmanship.

Stay Informed. Stay Protected.

Don’t fall for roofing scams. Trust your home to a company that’s built on integrity, service, and results that last.

Have questions? Contact Summit Roofing today at (512) 828-7663 or visit summitrooftexas.com/contact-us