Protect Your Roof and Wallet: Understanding Texas Deductible Fraud

Texas homeowners are no strangers to hailstorms and insurance claims, but many unknowingly step into legal and financial risk when hiring a contractor. One of the most common issues? Deductible fraud. It’s illegal in Texas, and it puts homeowners and their roofs at serious risk.

What Is Deductible Fraud?

Deductible fraud happens when a contractor offers to waive, absorb, or pay your insurance deductible so you don’t have to. As of September 1, 2019, this practice is illegal under Texas law. The law clearly states that contractors may not “knowingly allow the insured person to fail to pay the applicable insurance deductible.”

Why It Matters

1. You Could Be Committing Insurance Fraud
If a contractor inflates invoices or submits false information to the insurance company to cover your deductible, both you and the contractor could be held legally responsible.

2. Your Roof May Not Be Built to Code
Contractors who cut corners financially often cut corners physically. That can mean reusing old materials, skipping proper tear-off, or ignoring local building codes—all of which reduce your roof’s lifespan and put your home at risk.

3. You Face Legal and Financial Consequences
Homeowners involved in deductible fraud can face misdemeanor charges, up to 180 days in jail, and fines up to $2,000. You also risk losing warranties, future claim payouts, and property value.

How to Spot and Avoid Roofing Scams

Warning Sign	What It Really Means
Offers to “waive your deductible”	Illegal under Texas law
No deductible disclosure in contract	The contract must include clear 12-pt font language about deductible payment
“Everyone does it” justification	That’s not a loophole — it’s fraud
Invoice submitted to insurance exceeds what you actually paid	That’s insurance fraud and can be prosecuted

How to Protect Yourself as a Homeowner

1. Read the Contract Carefully
Texas law requires all roofing contracts to include a disclosure stating that the homeowner must pay their deductible. If it’s missing, that’s a red flag.

2. Ask About the Deductible Upfront
Honest roofers won’t avoid the conversation. If they promise to “take care of it” without documentation, walk away.

3. Verify the Scope of Work
A trustworthy contractor will explain how they’ll strip the roof down to the decking, follow building code, and use materials that match your insurance claim—not shortchange the job.

4. Save Documentation of Your Deductible Payment
Insurance companies can request this proof before releasing depreciation funds. If you can’t show it, your payout may be reduced or denied.

5. Report Fraud if You See It
Suspect someone is engaging in deductible fraud? Texas makes it easy to report—and you can remain anonymous. Learn more at dontfraudmytexas.com/report-fraud.

What Don’t Fraud My Texas Is Doing

The Don’t Fraud My Texas campaign is a public awareness initiative created by leading industry professionals to protect homeowners and uphold roofing standards. Through education, advocacy, and reporting support, the campaign helps homeowners avoid scams and ensure contractors follow the law.

They provide:

• Clear guidance on deductible fraud laws
• Templates for legal contract language
• Reporting tools for anonymous tips
• Educational resources for roofers and homeowners alike

Final Thoughts

Deductible fraud isn’t a harmless shortcut—it’s a crime. More importantly, it undermines the integrity of your roof, your insurance coverage, and your home’s value. Always work with a local, reputable roofing contractor who follows the law, explains the process, and requires payment of your deductible as required by Texas law.

For more resources or to report suspicious contractor behavior, visit www.dontfraudmytexas.com.