No. It is illegal in Texas for a roofer to pay, waive, rebate or absorb your insurance deductible. Business and Commerce Code §27.02 bans the practice, and Insurance Code Chapter 707 requires the homeowner to pay the deductible; House Bill 2102, effective September 1, 2019, made it an offense. Any “free roof” or “we’ll cover your deductible” offer is a red flag.
This guide explains what the law says as of October 2026, what counts as a deductible waiver (including the disguised versions), what your roofing contract must include, why the homeowner can get burned too, and how to report an offer. It is general information, not legal advice. For specific questions, call the Texas Department of Insurance at 800-252-3439.
What does Texas law say about roofers and deductibles?
Business and Commerce Code §27.02 says a contractor cannot offer to waive, rebate or absorb a property policyholder’s deductible. Insurance Code Chapter 707 says the insured must pay the deductible, and insurers may ask for proof. Contracts of $1,000 or more involving an insurance settlement must include a deductible notice.
TDI summarizes these rules on its Roofing and insurance: know the law page. The rules apply to any seller of goods or services who expects to be paid from insurance proceeds, which covers roofers, gutter companies, siding contractors and restoration firms.
When did deductible waivers become illegal in Texas?
House Bill 2102 took effect September 1, 2019. It made it an offense for contractors to pay, waive or rebate a homeowner’s insurance deductible. Before the law, “we’ll cover your deductible” was a common sales pitch after hailstorms. Now it is a violation that can be reported to the Texas Attorney General.
Community Impact covered the change when it passed in “Homeowners to pay full roof replacement deductible under new law”. Reported penalties vary by source, so check current statute text or TDI rather than relying on a number you saw in an ad or a blog.
Why does Texas ban paying the deductible?
Because the money has to come from somewhere. If a roofer “eats” a $5,000 deductible, the cost usually shows up as an inflated estimate billed to the insurer, cheaper materials or skipped steps. Inflated claims push premiums up for everyone, and insurers can investigate claims that look padded.
Texas sees heavy hail losses every year. State Farm alone reported paying about $1.4 billion in Texas hail claims in 2025, according to its newsroom. When claim dollars are that large, small padding on thousands of roofs adds up quickly.
What counts as waiving a deductible?
Any arrangement where you end up not paying your full deductible counts, even if it is dressed up as a discount or reward. That includes direct waivers, rebates after the job, “advertising fees” paid to you, fake upgrade credits and invoices inflated to cover the gap. The label does not matter; the outcome does.
| Offer you might hear | Allowed in Texas? | Why |
|---|---|---|
| “We’ll waive your deductible.” | No | Directly barred by Bus. & Com. Code §27.02. |
| “We’ll pay you $2,000 to put our sign in your yard.” | Risky, likely no | A payment that offsets your deductible works like a rebate. |
| “We’ll bill the insurer a little more to cover it.” | No | Absorbing the deductible through padding, and potential fraud. |
| “Free gutters if you sign today.” | Risky | Free extras funded by the claim can function as a rebate. |
| A written contract with a clear price and deductible notice | Yes | This is what the law expects. |
| You pay for an upgrade the insurer did not cover | Yes | You are paying more, not less, and it should be itemized. |
The middle rows are labeled “risky” because the answer depends on the facts. If an offer reduces what you personally pay below your deductible, assume it is a problem and ask TDI before signing.
Can I get in trouble if my roofer waives my deductible?
You can face real consequences. Chapter 707 makes paying the deductible your obligation, and insurers may ask for proof of payment. A claim built on an inflated invoice can be investigated, and misstatements on a claim can create problems for the homeowner as well as the contractor. The safest course is simple: pay your deductible.
There is a practical risk too. A contractor willing to bend this rule may be willing to bend others, such as skipping permits, reusing flashing or cutting corners on underlayment you will never see.
What must a Texas roofing contract include when insurance pays?
If the contract is $1,000 or more and the contractor expects to be paid from insurance proceeds, it must include a notice that you are required to pay your deductible. A good contract also lists the scope, materials, price, payment schedule and cancellation rights, and never promises to handle your claim.
Before signing, check for:
- Deductible notice: required on insurance-funded contracts of $1,000 or more.
- Clear scope: tear-off, decking, underlayment, flashing, ventilation and cleanup spelled out.
- Specific materials: manufacturer, product line and impact rating if you are paying for Class 4.
- Payment terms: no large upfront payment before materials arrive. In declared disaster areas, Business and Commerce Code Chapter 58 adds limits on disaster remediation contracts, summarized by Peckar & Abramson (verify the current text).
- No claim handling language: under Insurance Code §4102.163, a contractor cannot act as or advertise as your public adjuster.
Can a roofer talk to my insurance company at all?
A roofer can document damage and meet your adjuster on site to show what was found. A roofer cannot negotiate your settlement, speak for you on coverage, or advertise claim handling. TDI says contractors should avoid promises such as recovering “every dime you are owed.” You manage your claim directly with your insurer.
That is how we work in the Dallas-Fort Worth area. We inspect, photograph and write up what we find, and we can meet your adjuster to walk the roof. You file and manage your own claim, and you pay your own deductible. Once you and your insurer settle the claim, we handle the roof replacement itself.
How do I report a roofer who offers to pay my deductible?
Report it to the Texas Attorney General’s consumer protection line at 800-621-0508. You can also call TDI at 800-252-3439 with questions about deductibles or contractors acting as adjusters. Keep the flyer, text, email or contract that contains the offer, and note the date and who made it.
Reporting helps neighbors too. Deductible pitches tend to show up in waves right after a big storm, when door-to-door crews move into a neighborhood.
How can I lower my out-of-pocket cost legally?
Ask your insurance agent about deductible options and impact-resistant roof credits, compare written bids, and pay only for upgrades you want. Many Texas insurers offer discounts for UL 2218 impact-resistant roofs, with Class 4 earning the highest credit, though each insurer sets its own amount.
See TDI’s roofing discount page. The roofer certifies the install on form PC068, which you send to your agent. Over several years, a premium credit is a legitimate way to recover part of what a better roof costs. If a reroof is coming anyway, it is also a good time to plan solar on a fresh roof.
If you are in DFW and want a written, honest assessment from a roofer who follows the rules, contact our Fort Worth team. We will tell you what we see and what it would take to fix it.
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Frequently Asked Questions
Is it illegal for a roofer to waive my deductible in Texas?
Yes. Texas Business and Commerce Code §27.02 bars contractors from offering to waive, rebate or absorb a policyholder’s deductible. House Bill 2102, effective September 1, 2019, made it an offense. The homeowner must pay the deductible under Insurance Code Chapter 707.
Can a roofer give me a discount on an insurance roof job?
Not if the discount reduces what you pay below your deductible. Rebates, yard sign payments or free extras funded by the claim can work like a waiver. Paying extra for upgrades your insurer did not cover is fine when it is itemized in writing.
What deductible notice must a Texas roofing contract include?
Contracts of $1,000 or more involving an insurance settlement must include a notice that the policyholder is required to pay the deductible. If an insurance-funded contract lacks that notice, ask the contractor to add it before you sign.
Who do I report a deductible waiver offer to in Texas?
Call the Texas Attorney General at 800-621-0508. For questions about deductibles or contractors acting as adjusters, call the Texas Department of Insurance at 800-252-3439. Keep any flyer, text or contract showing the offer.