As a family-owned and operated Houston business, the ProRoofs Restoration team is known for treating our clients with the same care and respect we value in our own homes.
One way we do that is by keeping up with the state’s latest legislation and regulations that impact the construction and roofing industry to ensure we consistently provide high-quality and legally compliant work.
This includes the passing of bills like House Bill 2102.
When House Bill 2102 took effect in 2019, it was ultimately a good thing for residents of Texas, as it cracked down on unethical practices from less reputable roofers.
However, some people still need to learn what this new law means and how it applies to them and their next roofing project.
This blog will explore the details and impact of House Bill 2102 on the practice of waiving deductibles.
It also explains how ProRoofs Restoration can help residential and commercial property owners navigate these changes.
House Bill 2102 was passed in 2019.
It was introduced as a response to a common (and technically illegal) practice among some disreputable Texas contractors (primarily roofing contractors).
The Insurance Fraud Problem in Roofing
Imagine a person’s roof was damaged after a bad storm.
They reach out to a roofing contractor for help.
That contractor tells the client that they will help them out and waive their $1,000 insurance deductible, essentially offering them free roof repairs.
The contractor sends the client an invoice for the repairs.
The client will then send the invoice to their insurance company for payment.
Contractors are expected to be honest about the cost of their repair services.
Before House Bill 2102, though, that wasn’t always the case.
The contractor may plan to complete $6,000 of work but bill the insurance company $7,000 to make up for the deductible they “waived.”
Some contractors also tell the client they will “absorb” the deductible cost and then write them a check for the deductible amount.
In both situations, they’re committing insurance fraud — and so is the client, even if they don’t know what the contractor is doing or that it is illegal.
Another issue for clients is that they often weren’t getting quality repairs from the roofers who waived their deductibles and offered discounted services or other perks.
Because these roofers’ primary objective was making money, they often cut corners during their repairs to get the job “done” faster.
As a result, clients didn’t get the help they expected.
Many also had to spend additional money later (out of pocket) to make up for the poor work done by the first contractor.
Was It Ever Legal to Waive Deductibles?
Technically, the practice of waiving deductibles has always been illegal in Texas.
However, the law was poorly written and wasn’t well enforced before 2019, when House Bill 2102 was passed.
Many contractors were operating in a gray area before House Bill 2102, making it easier for them to get away with unethical practices and put their clients at risk.
Stricter Regulations for Roofing Contractors
In other words, House Bill 2102 is a crackdown on contractors “waiving” deductibles for clients.
Chapter 707 of Texas’s Insurance Code, House Bill 2102, states that people with property insurance policies must pay all applicable deductibles.
It also punishes contractors who don’t collect a deductible.
The law explicitly states that contractors cannot do any of the following:
- Pay for a deductible
- Waive a deductible
- Absorb a deductible
- Rebate a deductible
- Credit or offset a deductible
They also cannot assist the insured client in any other way that prevents them from paying a deductible directly.
Consequences of Breaking the Law
If a contractor or an insured policyholder violates this law, they’re committing a Class B misdemeanor offense, which can be punished with 180 days in county jail and a fine of up to $2,000.
However, policyholders can be exempt if they promptly notify their insurance provider about the contractor’s violation.
Another necessary provision of this law is titled Reasonable Proof of Payment.
Essentially, this clause states that an insurance provider can refuse to pay a claim until they receive “reasonable proof” that the policyholder has paid the deductible.
Examples of reasonable proof include credit card statements, canceled checks, or a money order under receipt.
If a client cannot afford to pay their deductible in full, the law does allow them to pay it in installments.
They must provide a copy of the installment plan or financing agreement to show that they do intend to pay their entire deductible.
How to File a Complaint with the Texas Department of Insurance
If a customer encounters a contractor who offers to waive their deductible or cover it in some way, they must report that contractor to their insurance provider immediately.
They may also need to file a complaint with the Texas Department of Insurance.
Implications of House Bill 2102
The overall impact of House Bill 2102 on Texas insurance providers and contractors is pretty straightforward: There’s no more waiving deductibles in Texas for any contractor, including those in the roofing business.
The passing of this bill is a win for roofing contractors, insurance providers, and consumers.
Ethical roofing contractors in Texas benefit because they no longer lose business to contractors breaking the law by waiving deductibles.
They can also feel confident that those who continue to break the law will be punished.
Consumers also benefit because they no longer risk accidentally committing insurance fraud.
They’re also less likely to end up with shoddy repair jobs (which cost them more money in the long run than if they had just paid their deductible and worked with a trustworthy roofer).
Some people have expressed concerns that House Bill 2102 will make it harder for people with limited resources to repair their roofs because they won’t be able to pay their deductible.
However, because the bill allows for installment payments, those without the money to cover the deductible can still get prompt assistance.
ProRoofs Restoration: Navigating the Changes
At ProRoofs Restoration, we pride ourselves on our quality roofing work and high moral and ethical standards.
We have decades of experience in the construction and restoration industry and work hard to keep up with the latest laws and regulations and abide by them.
ProRoofs Restoration gladly handles insurance claims and deductibles for our clients to minimize their stress and free them to focus on their plans to repair and restore their homes and businesses.
We understand the details of House Bill 2102 and are confident that our services align with them.
We are also happy to walk clients through the essential elements of the bill and explain our commitment to compliance.
Roofing Clients Sharing Their Experience
We’re proud of our reputation in Houston and surrounding areas and have worked hard to support our clients throughout the years.
Here are some of the positive reviews our clients have left for us:
I had a really great experience working with Henry and the ProRoofs team. They dealt with the insurance company so we didn’t have to. I highly recommend them and would absolutely do business with them again!
Henry was honest and helpful when explaining to me my options for roof repair vs. roof replacement. He worked with my insurance company to ensure they would pay for roof replacement. His crew did a terrific job with my roof and with clean up, too. Outstanding work and service.
ProRoofs Restoration: Your Trustworthy Roofing Company
House Bill 2102 was passed a few years ago, but many Texas residents aren’t aware of it or the unethical practices that led to it.
Because of their lack of knowledge, some contractors are still trying to pull the wool over their eyes and get away with waiving deductibles.
The information discussed above can help those needing roofing repairs catch questionable practices early and report law-breaking roofing contractors to their insurance companies immediately.
If you want to work with a roofing contractor that is aware of the latest laws and regulations and commits to following them, reach out to us at ProRoofs and Restoration.
We assist with residential and commercial roofing repairs, as well as windows, siding, drywall, fencing, and more.
Contact us today for all your construction and roofing needs!