This is one of the most common things you hear about when talking to friends and neighbors when you're trying to get your roof repaired or replaced for free under your insurance. However, we beg you to read on and learn exactly why it's probably not worth it.
Why Is It Illegal to Waive Your Deductible?
Roofers, and especially door-to-door roofers, have been breaking the law by helping homeowners avoid paying their deductibles. Roofers don’t always come out and tell you they are waiving your deductible. Often times, they will do things like offer “advertising credits” or give “refunds” that equal the amount of the deductible in an attempt to find a loophole to avoid breaking the law, but that is still illegal and insurance companies and law enforcement are privy to this. They ultimately break the law because the only way to do this is to create a false invoice to send to the insurance company.
State law requires the deductible to be collected by the contractor on all insurance claims. Under the Insurance Fraud Chapter (35) of the Penal Code “Offenses Against Property”, if you are a party to the fraud listed above then, you have committed an offense under this section. Specifically, under 35.02, Section B, number 3 or 4:“(3) A Class A misdemeanor if the value of the claim is $500 or more but less than $1,500.00; or(4) a state jail felony if the value of the claim is $1,500 or more but less than $20,000.”
Your home is not the place you want to cut corners or save a few bucks.
What is Your Deductible?
In many ways, this is how a deductible works on a roof claim. Your deductible depends on your insurance policy, but it is an amount that you, the homeowner, agreed to pay before the insurance company pays out on a claim. Your deductible was determined by you and your insurance agent when you were picking out property insurance policies.
Now let me explain to you why it is illegal for you to not pay it, and why many roofers are getting homeowners in trouble by offering to waive deductibles.
Let's Look at an Example
Let’s say you have a roof claim for $20,000, as determined by the insurance company.
You have a deductible of $1,000.
This means the maximum the insurance company will pay out is $19,000 ($1,000 is paid by you to the roofing company). However, the insurance company in this example will break the $19,000 up into two payments. I’ll elaborate on this more later.
You (the homeowner) gets a quote to do the roof for $19,000. Sounds great, right? You are probably thinking you don’t have to pay that $1,000 deductible. Well, this is not the case.
Let me explain. If your roofer sends in an invoice for $19,000 (which is the true cost of the roof), your insurance company is going to celebrate with joy because they are going to take the $1,000 deductible off of that and only pay $18,000. They will love you and your roofer for saving them money!
The other scenario, which is where fraud ends up being committed, is the roofer sends a false invoice of $20,000 which will result in the insurance company paying $19,000. The problem with this is falsifying an invoice is a felony and you have just made yourself party to insurance fraud.
I mentioned earlier that the insurance companies split the payments into two payments. The first payment is called the ACV payment (actual cash value). This is the amount the roof is worth at that time. The second payment is the Recoverable Depreciation, that is released after the work is completed. This is how insurance companies will catch people not paying their deductibles because they have now started to require proof that a deductible was paid before they release the second check.
This means that, by trying to save $1,000, you just cost yourself a lot more than that. The worst part of this is, there are homeowners being implicated in these schemes and they are facing heavy fines and possible jail time right alongside their roofers. I know, this is an example of the extreme worst case, but let’s talk about ethics for a second.
Watch this video now to see what you should expect with our roof inspection process:
Choose a reputable Allen, TX Roofer
Your home is probably the most expensive and most valuable asset you have. That being said, hiring people with the right ethics and values to work on your home really matters. If a roofer is willing to commit felony fraud and is willing to get you to knowingly (or unknowingly) be a participant in this, then what corners are they willing to cut in other parts of their life, or on your roof?
At Rivertop Roofing we are the Allen roofers who have the experience and expertise to help you with a detailed inspection report and helping you through the insurance restoration process. To get in touch with one of our service writers, give us a call at 214-449-1145 or click here to set up a free inspection. We offer free 101-point roof inspections that are easy and completed quickly. Most of our roof repair or replacement jobs also only take one day and our professional, friendly team, will ensure you have a wonderful experience!
Schedule Your Free Roof Inspection Today
In Allen, TX, our roof inspection services are efficient, taking about an hour or less depending on the size of your roof. We value your time, aiming for a balance between speed and thoroughness.
If a roof inspection is on your radar, contact Rivertop Roofing for a consultation. Click here to schedule your inspection today. Whether you're in the heart of Fort Worth or the outskirts of Plano, Rivertop Roofing has your roofing needs covered. Reach out today and start a journey into reliable roofing solutions that blend technical know-how with professional finesse.