Should your Roofing Company Offer to Pay your Deductible
There is often a deductible with any insurance claim. So, if you make an auto insurance claim, you’ll pay a deductible when you have the repairs done. That being said, some roofing companies often state that they can “waive” or “absorb” your deductible.
While many roofing companies conduct themselves professionally and reputably, some roofing contractors aren’t so scrupulous. Although a shady roofing contractor might offer to pay the expense of the deductible on your insurance policy, in reality, doing so often requires the company to submit false or inaccurate figures on the claim.
In case the state or local statutes render the roofing company paying for insurance deductibles illegal, like indicated in Minnesota state law, then the laws also offer protection to the insurance company.
The insurance company does not need to consider the estimate submitted by the roofing company if the insurer determines the roofing company is involved in illegal business practices.
If multiple companies are preparing estimates and a few of them are providing the homeowner with a “special discount” to take care of the insurance deductible, then the insurer will not consider those roofing companies when it examines estimates and determines the outcome of the claim.
Relevant State Laws
Note that in many states, like Texas, a roofing company paying for an insurance deductible is illegal. As per the terms stipulated in the Business and Commerce Code, a roofing contractor selling goods or services commits fraud if they agree to pay any amount of the insurance deductible.
In addition, it is illegal in a few states for roofing companies to provide rebates when meeting the terms and conditions of their contracts. Although you may save yourself a couple of hundred dollars by hiring a roofing company that would absorb your insurance deductible, keep in mind that you might end up costing yourself much more, especially in the long term by trading those savings for substandard materials and cheap labor.
You must ask yourself if you would like to deal with a roofing contractor that is willing to submit misleading and false information to the party that is cutting the checks. Or would you pay a bit more to get the job done right the very first time to ensure your roof lasts several years and offers your home the effective protection you really need?
Many roofing companies also engage in various other shady practices. For instance, a company may show up at your house and make unsupported or unsubstantiated verbal promises. As a homeowner, you may believe that the deal offered by your roofing company is actually beneficial, and agree to use the company’s services.
That being said, always bear in mind that without having the all the terms and conditions of your agreement spelled out often in a written contract, you do not have appropriate legal grounds to sue the contractor for damages in case your roofing contractor doesn’t fulfill all the terms and conditions of the verbal contract.