Do I have to pay my insurance deductible in Texas?

Wondering if you have to pay your deductible for a storm damage claim in the State of Texas? Or maybe a contractor just told you they will “waive” your deductible.

According to the newly passed HB2102 (Chapter 707), effective 9/1/2019, Texas law now requires all insured person’s under a property insurance policy to pay any deductible due for the claim. By violating this new law, both the property owner AND the contractor can be subject to significant fees and even possible jail time (section 707.006C).

As a property owner, please BEWARE of any company offering to “waive” deductibles, “eat” deductibles, or any other creative way to assist you in not paying the required deductible. If someone is willing to assist you in breaking the law, what other corners are they comfortable in cutting during the process of restoring your home?

This is why it is important to select a quality contractor, like Praus Construction and Roofing, to help you with these details. From integrity in how we operate to quality in everything we do – let us help make this troubling situation go away.

Click here to view the full language of Texas House Bill 2102.

What is an insurance deductible?

The deductible is the amount of the claim that is the property owner’s responsibility, based on the agreement made with the insurance company. This portion is the FIRST PORTION to be paid and applied to the total amount of the claim.

In the past, it has been common practice for some contractors to offer to waive this deductible amount for the property owner. The problem with this is this amount is a portion of the claim to be paid, and that amount of money is required to be able to adequately and properly restore the property to the pre-loss condition. Reducing the amount of money that is available for the restoration of the property will either result in a reduced amount of work to be completed for the property, or the work being completed in a below standard manner.

The process of restoring your property after a storm or damage claim can be confusing and cumbersome. Let the professionals at Praus Construction and Roofing help you to navigate this process.