Don’t Commit Deductible Fraud: What Every Texas Homeowner Should Know
- David Reyes
- 7 days ago
- 2 min read
In the wake of a storm, many homeowners are left scrambling to repair their roofs or property. Some contractors might promise a “free roof” or offer to cover your insurance deductible — but be warned: this could land you in legal trouble.
Not paying your deductible is illegal in Texas, and it’s a problem that hurts everyone — including you.
What Is Deductible Fraud?
Deductible fraud happens when a contractor offers to “waive” or “absorb” your insurance deductible by inflating invoices, submitting false claims, or cutting corners on your roofing job. While this might sound like a good deal, it’s a form of insurance fraud — and it’s illegal.
Why It Hurts Everyone
It lowers the quality of your roof and can reduce your property value.
It puts you at risk of being involved in a fraudulent insurance claim.
It undercuts honest contractors who follow the law and do quality work.
Deductibles Have Changed — and So Has the Risk
Twenty years ago, most property insurance deductibles were around $500. Today, it’s not uncommon for deductibles to be 1–2% of your property’s total value. That means for a $500,000 home, your deductible could be $5,000 to $10,000.
Unfortunately, as deductibles have gone up, so has the temptation to commit fraud — and that’s where many homeowners unknowingly make a costly mistake.
How Corners Get Cut to Waive Your Deductible
To “cover” your deductible, some shady contractors will:
Use sub-standard or even stolen materials
Skip steps like installing proper felt or underlayment
Submit fake claims for phantom damage
Carry no insurance or liability coverage
Do rushed or incomplete workmanship
Use workers who aren’t certified or trained
The result? A roof that fails faster, risks future damage, and can even void your policy or warranty.
The Bottom Line
If a contractor offers to waive your deductible, walk away. It’s a red flag — and it could cost you far more in the long run, both legally and financially.
When in doubt:
Ask for proof of insurance and licensing
Get everything in writing
Never sign a blank or incomplete contract
Report suspicious offers at DontFraudMyTexas.com
Need a Roof Inspection You Can Trust?
We provide roofing assessments — and we’ll never ask you to break the law to save a buck. Let’s keep Texas safe and fraud-free.