Roof Replacement Deductible Texas

A person insured under a property insurance policy shall pay any deductible applicable to a first party claim made under the policy see tex.

Roof replacement deductible texas.

This applies even to hail resistant roofs such as slate concrete and ceramic tile. It is illegal for contractors or roofers to offer to waive a deductible or promise a rebate for all or part of a deductible. To get the job texas roofers often offer homeowners a free roof by agreeing to pay the homeowner s insurance deductible. Under texas house bill 2102 approved in the most recent legislative session roofing contractors who offer to waive a homeowner s deductible on their property insurance policy could face jail time.

It is not a completely new law but rather a clarification and more carefully worded version of the deductibles law that has been around for years. Let s say it will cost 20 000 to replace your 10 year old roof after hail damage and your home policy has a 3 000 deductible. Under texas house bill 2102 approved in the most recent legislative session roofing contractors who offer to waive a homeowner s deductible on their property insurance policy could face jail time. If a roof repair cost 6 000 and a homeowner had a 1 000 deductible adjusters would just cut the homeowner a check for 5 000 subtracting the deductible cost.

One carrier i work with offers a 1 deductible for roofs less 9 years old but raises the deductible to 1 5 on roofs older than 9 years regardless of the roof type. The first full paragraph states. The new law entitled payment of insurance deductible goes into effect september 1 2019 and will be located in chapter 707 of the texas insurance code. In this example the roof is 15 years old and the policy owner s deductible is 1 of insured amount 1 000.

A policy with replacement cost will pay 17 000 20 000 3 000. Today that s not the case. Today most homeowners have replacement cost value rcv provisions in their insurance policies. It is a win for reputable contractors as it will punish contractors who waive or otherwise don t collect insurance deductibles from their clients.

Hb2102 is the new deductible law that went into effect september 1 st 2019 only 3 months after it was signed by the governor. This is usually done with a depreciation schedule. The practice of waived deductibles by roofers became commonplace in north texas zelle law firm attorney steven badger said. A policy with actual cash value coverage will take into account the age of your roof.

Instead of doling out lump sums insurers will now break down payments into separate checks. Replacement cost value rcv provisions.