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Can a Roofer Legally Waive My Insurance Deductible?

Deductibles can be intimidating, especially when you’re staring down an expensive piece of home repairs. The instinct to lower what you have to pay out of pocket may tempt you to consider the offers of contractors who claim they can waive the deductible or offer a kickback and deliver a low-cost repair. While this sounds like a bargain, it can be the furthest thing from a good deal.

The practice of waiving an insurance deductible or offering kickbacks on insurance claims is considered insurance fraud and is illegal. Companies with integrity and pride in their service will not engage in this practice. Furthermore, it can lead to higher costs over time as cut-rate materials and uninspired workmanship deteriorate or outright break under duress. You may find yourself expending more money to repair what you thought you had already fixed.

Waiving the Insurance Deductible – Once Legal, Now Fraud

Insurance settlements were handled differently in the past. Previously, a homeowner would receive a single, lump-sum payment for the amount of money required to fix their home minus the deductible. They could then disperse funds as they saw fit to accomplish their desired repairs.

Today, most insurance claims have Replacement Cost Value, or RCV, provisions in the policies. These break down payments into multiple checks that may be written to the mortgage company as a cosigner. Through this system, the only way to recoup the full amount of a settlement is to have a licensed contractor bill the insurance company for cost incurred on the project or claim. Payments are then dispensed through this system.

How Roofers Claim to Waive an Insurance Deductible

To waive a deductible, a homeowner and contractor work together in collusion (whether the homeowner is aware of it or not), and must falsify claims to both the insurance and mortgage companies. They inflate costs by the amount necessary to cover the waived deductible. This is, in its simplest form, insurance fraud. It breaches the contract between the insured homeowner and the insurance company. It may seem harmless, but roofing contractors have lost their licenses for these practices.

Your home is your largest investment. Ensuring quality workmanship undertaken by a company with integrity will protect that investment. Contact A.J. Wells Roofing & Construction for more information on performing your necessary repairs, scheduling a roof inspection, or any other questions you may have.

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