New Texas Law Cracks Down on Roof Scams

Roofing Laws

While the roofing repair industry has definitely had its share of competition, we’re happy to announce that HammerHead Roof is still standing tall. We’ve got YOU covered… and we’re not going anywhere. Unfortunately, we can’t say the same about hundreds of “competitors.”

According to the TX.GOV website, a new state law makes it clear that it’s illegal for a contractor or roofer to waive an insurance deductible.

“This new law will help further protect consumers,” said Texas Insurance Commissioner Kent Sullivan. “Roofers who waive deductibles are cutting corners. Take your business elsewhere.”

After a major storm, contractors – including some scam artists – are quick to arrive on the scene. This leads to shoddy repairs, fake contracts, and other problems. The Texas Department of Insurance created a special fraud unit that meets with local officials after a disaster and explains steps they can take to protect residents from contractor scams.

One selling point bad contractors often use is offering to waive or absorb the homeowner’s deductible. The contractor then cuts corners, uses lower quality products, or inflates the bill sent to the insurance company to cover the difference.

It is illegal for contractors or roofers to offer to waive a deductible or promise a rebate for all or part of a deductible. Under the new law effective September 1, violators could get up to a $2,000 fine and up to six months in jail.

Tips to avoid contractor fraud

  • Get written estimates on company letterhead with clear contact information.
  • Check references and phone numbers.
  • Beware of those who only have out-of-town references.
  • Don’t pay in full up front and don’t make a final payment until the job is done.
  • Never sign a contract with blanks on it.

Source: tdi.tx.gov

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