Am I Required to Pay My Insurance Deductible?
Homeowners frequently inquire as to whether or not they have to pay their insurance deductible in order to use their homeowner's insurance for roof repairs or replacement.
In Texas, If you want your homeowner's insurance to cover the expense of your roof repairs or replacement, the quick answer is YES, you must pay it. Texas law REQUIRES homeowners to pay their deductible when filing a claim on their homeowner's insurance. Here is an excerpt from the Texas law:
Texas law requires a person insured under a property insurance policy to pay any deductible applicable to a claim made under the policy. It is a violation of this Texas law for a person or business paid wholly or partly from proceeds of a property insurance claim to knowingly allow the insured person to fail to pay. Or assist the insured person’s failure to pay, the applicable insurance deductible. See SECTION 2. Business & Commerce Code, is amended to read as follows: Section 27.02. “Goods or Services Paid for by Insurance Proceeds: Payment of Deductible Required".
What Does “Deductible” Mean?
Our simple explanation is that a deductible is a predetermined and contractually agreed upon amount of money that you must pay before your insurance company will pay you or begin working on your claim. The deductible is the part of the claim in which you are required to pay. If you want to learn more about what the State of Texas says about deductibles, click here.
When SHOULD your deductible be paid?
If you're ready to make a significant investment in your house, such as installing a new roof, insurance might be a lifesaver. The majority of roofs cost around 10 percent of a home's worth, which is a lot! In this case, paying your deductible will save you money since you will only be responsible for a tiny percentage of the supplies and labor. Your insurance company will cover any remaining costs. So, in short, any time that you and your insurance company agree that damages to your home is covered under your policy and the cost of repairs exceeds your deductible, then it makes sense to pay the deductible.
When you SHOULD NOT pay your deductible.
Depending on the extent of the damage, you may not be required to pay your deductible or submit a claim with your homeowner's insurance carrier. If your home only sustained minor damages and said damages does not exceed your deductible, paying for the damages out of pocket will save you money. This is the one and only situation in which we frequently advise homeowners NOT to pay their deductible.
Beware of Roofers Who Offer to Pay Your Deductible!
Yes, it appears like you're paying your contractors a lot of money, but the majority of your insurance proceeds will (or at least should) go into supplies and labor. If a roofing contractor states that they would "pay your deductible”, it makes sense to expect that your contractor will be recuperating that cost somewhere else on the job. They must be able to pay their staff and remain in business, meaning that they cannot afford to lose money on your project. If they DO pay your deductible, they will make up the difference by cutting expenditures elsewhere. For instance, they may utilize inexpensive shingles, forego using ice & water shield, reusing flashing or charging for a synthetic underlayment and actually install a lesser priced and quality underlayment. Below is other ways that roofers can make up the cost of covering your deductible.
Neglecting Ventilation
Ventilation is vital for extending the life of your roof, particularly in Texas, with its scorching summers and hard winters. (Read our article "is attic ventilation important").
Winter brings harsh freezes and ice storms, so ventilation helps snow and ice melt uniformly and drain from your roof, reducing the likelihood of an ice dam. When a roofer is attempting to save money and increase profits, they frequently omit this crucial procedure, which drastically limits the useful lifespan of your new roof.
Utilizing Cheaper, Less Quality Shingles
Using a lesser quality shingle may be cheaper because they include flaws or have been constructed in a way that even the manufacturer lowers the amount of time that they will warranty the product. Using these cheaper products can save your roofer a ton of money, but ultimately can cost you much more down the road when your roof fails or doesn’t perform to the standard that you need.
Working quickly but with poor quality
More roofs completed equals more money, but it also means that you are more likely to experience problems with your roof due to the job being completed too rapidly and without the proper attention details.
A Roofing Contractor You Can Rely On
Your roof protects everything in your home that is important to you, therefore it is a worthy investment. Contact us if you are in need of a roofing contractor who will perform quality work without taking shortcuts. To book a Roof Inspection, call Fortis Roofing Systems at 817-576-8797 or click here.
