What Is Deductible Waiving?
Deductible waiving, also called eating the deductible, is when a roofing contractor pays, covers, or rebates a homeowner's insurance deductible as a sales incentive, and it is insurance fraud, illegal in at least 28 states, not a legitimate discount.
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Deductible waiving, also called eating the deductible, is when a roofing contractor pays, covers, or rebates a homeowner's insurance deductible as a sales incentive, and it is insurance fraud, illegal in at least 28 states, not a legitimate discount.
Deductible Waiving explained
This is not a gray area. Waiving or absorbing a homeowner's deductible in exchange for their business is illegal in a minimum of 28 states, and two of the largest storm-restoration markets have named, specific penalties on the books.
In Texas, deductible waiving has been illegal since September 1, 2019. Homeowners involved can face misdemeanor charges, up to 180 days in jail, and fines up to $2,000, per the Texas Department of Insurance.
In Colorado, SB 38, passed in 2012 and codified at C.R.S. 6-22-101 through 105, makes it illegal for roofing contractors specifically to pay, waive, or rebate a homeowner's deductible. Both states treat the practice as fraud on the insurer, not a private arrangement between homeowner and contractor, which is why the penalties attach to the homeowner as well as the contractor in Texas specifically.
Why it matters when you're buying
Never build a sales script, promotion, or marketing claim around covering or waiving a homeowner's deductible. In Texas and Colorado specifically this exposes both the homeowner and the contractor to real legal consequences, and the practice is banned in at least 28 states total, so treating it as a state-by-state gray area is not accurate.
Frequently Asked Questions
Is it illegal for a roofer to waive a homeowner's deductible?
What happens in Texas if a contractor waives a deductible?
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