Why We Don’t Cover Deductibles, And How That Works in Your Favor
A lot of our customers ask us about their insurance deductible, and our answer is always the same – we do not cover deductibles in any situation. However, while the answer to that question may be short and simple, the thought process behind it isn’t. There’s a reason that we don’t cover deductibles, and it involves important recent developments in both Texas law and standard insurance practices.
HB 2102 is a piece of legislation that went into effect on September 1st, 2009. This legislation makes the ban on waiving insurance deductibles enforceable under the law. Insurance companies, contractors, and even homeowners found in violation of HB 2102 can be prosecuted and sentenced to serve up to 180 days in jail and charged up to $2,000. Because of HB 2101, a lot of licensed roofing companies, T. Williams Roofing included, have adopted more strict policies when working with insurance and deductibles in order to protect ourselves and our customers from legal ramifications.
Roofers aren’t the only group affected by this legislation, and they aren’t the only companies making policy changes. Insurance companies have also changed their procedures relating to deductibles, both in response to HB 2102 and in an attempt to address flaws in their previous process, and understanding these changes is important to any homeowner in need of major roof repairs. As part of our commitment to our customers, our The Woodlands team is here to give you all the information we can about these new policies so that your roofing experience can be stress-free from beginning to end.
The Way it Used to Be:
- You and your insurer find the licensed contractor with the lowest bid to provide the repairs you need
- Your insurer writes you a check for the full price minus your deductible
Unfortunately, a lot of unqualified contractors would take advantage of this process by undercharging customers for roofing repairs. These contractors would cut corners and neglect key parts of the roofing process to give you a lower price, and yes, they would offer to waive deductibles. This meant that the insurance companies would often find themselves paying for far more than the actual cost of the roof, and customers would end up with roofing that was unable to adequately protect their homes.
The Way it Is Now:
- Insurance companies don’t pay the full amount at once – they will often withhold a portion as “depreciation” until the work is complete
- Companies will also work with your mortgage provider to ensure the work is completed as agreed upon with the agreed-upon contractor
So for example, if the insurance company approves a claim for $20,000 with a $5,000 deductible, they are not going to write one check for $15,000. They are going to write the first check (ACV) for $10,000 then wait for your contractor to submit proof of payment of $15,000 (ACV: Deductible + First Check) upon completion of work. They are going to hold back the remaining $5,000 as recoverable depreciation. That recoverable depreciation cannot be released by the insurance company in the State of Texas without proof of full ACV provided by contractor with completion photos. If you find a contractor to do your project for $15,000, you will no doubt have a far less quality system than a T Williams Roof. Your insurance will also receive their invoice and close the claim without releasing remaining $5,000. Both scenarios you paid your $5,000 deductible. The $15,000 contractor charges you for any unforeseen cost including mold, rotted plywood, rusted out flashing, etc. The $20,000 insurance roof with T Williams Roofing gets your insurance to cover all those extra costs. You pay your deductible up front and not a penny more.
Why this is Good News for You
HB 2102 and the changes to insurance policies are both designed to benefit you, the homeowner. With these changes in place, you won’t have to worry about being taken advantage of by unlicensed roofers who haven’t been verified by the state or your insurance company. Additionally, you won’t have to worry about your insurance company suddenly saying they won’t pay you the amount they said they would, because they’ll know exactly what work was completed and what the real cost is. We won’t waive your deductible, but your deductible will be the only thing you have to pay.
Consult with our roofers today by filling out our online contact form or calling our office at (832) 669-6996. Our services are available in The Woodlands and all of the surrounding areas, and we always work with your insurance company to get you the best deal possible.