A new law in Texas that goes into effect on Sept. 1 makes it clear that it’s illegal for a contractor or roofer to waive an insurance deductible, according to the state insurance department.
“This new law will help further protect consumers,” Texas Insurance Commissioner Kent Sullivan said in a media release. “Roofers who waive deductibles are cutting corners. Take your business elsewhere.”
After a major storm, contractors – including some scam artists – are quick to arrive on the scene. This leads to shoddy repairs, fake contracts, and other problems. The Texas Department of Insurance created a special fraud unit that meets with local officials after a disaster and explains steps they can take to protect residents from contractor scams.
One selling point bad contractors often use is offering to waive or absorb the homeowner’s deductible. The contractor then cuts corners, uses lower quality products, or inflates the bill sent to the insurance company to cover the difference.
It is illegal for contractors or roofers to offer to waive a deductible or promise a rebate for all or part of a deductible.
HB 2102, by Rep. Giovanni Capriglione, is effective Sept. 1. Under the new law, violators could get up to a $2,000 fine and up to six months in jail.
Source: TDI
Topics Texas Legislation Contractors
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