Roof Deductible Rules

Some contractors offer waived or discounted deductibles as a selling point to their customers. Whether they know it or not, they’re asking their customers to commit insurance fraud. In order for a contractor to waive a homeowner’s deductible, they must provide a false invoice to the insurer – this constitutes insurance fraud.

When an insurance company pays for your roof repairs, it subtracts your deductible amount from its payments. That deductible expense is the contractual responsibility of the insured homeowner, and it is illegal for a contractor to interfere with this contractual obligation.

Contractors who waive insurance deductibles provide an invoice to the insurance carrier to release funds, and then provide a different invoice or collect a different amount from the insured homeowner. If an insurance company knows a contractor is billing them for the full project cost, but not billing the homeowner for the same amount, they could demand repayment for the difference and refer the contractor and the customer to the state for investigation.

At Premier, we believe that honesty and transparency with our customers and insurance carrier partners are paramount to long-term stability and the health of the industry in general. It is important for all participants in the insurance claim process to work together in good faith to ensure healthy relationships in the industry, and frankly, to keep our customers out of trouble. Check your local statutes and regulations below to understand all of the implications of a contractor who offers to pay, waive, or discount your deductible.