Finding a Contractor for an Insurance Roof Replacement? Don’t Fall for This Scam
Dolan Roofing & Construction is here to protect homeowners from the unethical practices that still plague the roofing industry. Don’t fall victim to scams like the so-called “deductible waiver,” where unethical roofing companies promise to waive your insurance deductible for a roof replacement. It might sound appealing at first, but this tactic can lead to serious consequences.
Unfortunately, this is a scam to steer well clear of—and it could land you (and your roofer) in a heap of trouble. At Dolan Roofing & Construction, our goal is to provide high-quality roofing services our customers can trust. And while we know not everyone will work with us, we still encourage all homeowners to be on the lookout for potential roofing scams. Here’s how this one works and how you can avoid it.
Contact us today to learn how to safeguard your home with trusted, ethical roofing services!
The Situation: An Insurance Roof Replacement or Repair
The situation for this scam is a roof replacement that an insurance provider has agreed to cover after filing a claim. This will most often be due to severe storm damage, particularly in our area. However, in some cases, it may also be a result of faulty materials or other issues.
The bottom line, though, is that an insurance provider has evaluated the problem and agreed to cover some portion of the roof replacement. You’ll be expected to pay the deductible, and then you’ll receive a payment covering charges beyond that amount.
The Scam: Offering to Waive or Pay Your Deductible
While having your insurance cover the cost of a roof replacement is already a great deal, some roofers may attempt to gain your favor and business by offering to reduce costs even further. They’ll claim that they can waive your deductible, leaving you with more money in your pocket.
Most insurance policies will have a deductible of anywhere from $500 to $2,500. If your deductible is $1,000, it certainly would be nice if you didn’t have to pay that amount of money as part of your roof replacement, right?
So, What’s the Problem Here?
House Bill 2102, enacted in 2019, explicitly prohibits roofing companies from offering to offset the deductible, and it also holds homeowners accountable if they knowingly submit claims with waived deductibles.
The problem with a roofer offering to “waive” your deductible is that it actually constitutes insurance fraud. The issue lies in how the process actually works—they aren’t waiving your deductible at all. The roofer has no authority to waive your deductible, and no insurance company would agree to do this.
Instead, the roofer will make it appear as though your deductible was paid for. In reality, the roofer misrepresents the cost of your roof repairs or roof replacement to the insurance company—for example, claiming that the cost to replace your roof was $10,000 when in fact it was $9,000.
The reason this constitutes insurance fraud should be clear: They’ve lied to your insurance provider, almost certainly in violation of the policy you signed.
What Are the Consequences?
If this scheme is uncovered, you’re likely to face financial penalties. While the roofer initiated the scheme, you’re still liable as well. Even if you aren’t hit with a fine, you’ll almost certainly void your policy, leaving you to pay the entire cost for your roof replacement or repair without the help of insurance.
Contractors must include language in their contracts (in at least 12-point font) stating that homeowners are required to pay their deductible. Violations of this law can lead to fines of up to $2,000 or even jail time for both the contractor and the homeowner. Additionally, insurance companies are now authorized to require proof that the deductible has been paid before disbursing the remaining claim amount.
Always Work with a Trusted, Transparent Roofer
When it comes to choosing a roofing contractor, transparency and trust are paramount. Make sure to check through reviews and carefully vet roofers before choosing the roofing company you want to complete your roof replacement. Opt for a communicative roofer with a long history of quality work in your community.
And if a roofer ever offers to waive your deductible, hang up the phone immediately.
In need of a roofing partner for your roof replacement? At Dolan Roofing & Construction, we make sure to do the job right every time, and we’ll always keep you in the loop. We’ve been San Antonio’s most trusted roofer for years. Get started today with an inspection!
