A policy with replacement cost will pay 17 000 20 000 3 000.
Roof replacement deductible texas.
It is not a completely new law but rather a clarification and more carefully worded version of the deductibles law that has been around for years.
Under texas house bill 2102 approved in the most recent legislative session roofing contractors who offer to waive a homeowner s deductible on their property insurance policy could face jail time.
A person insured under a property insurance policy shall pay any deductible applicable to a first party claim made under the policy see tex.
Hb2102 is the new deductible law that went into effect september 1 st 2019 only 3 months after it was signed by the governor.
The practice of waived deductibles by roofers became commonplace in north texas zelle law firm attorney steven badger said.
The first full paragraph states.
The full replacement cost of the roof is 10 000.
One carrier i work with offers a 1 deductible for roofs less 9 years old but raises the deductible to 1 5 on roofs older than 9 years regardless of the roof type.
It is illegal for contractors or roofers to offer to waive a deductible or promise a rebate for all or part of a deductible.
In this example the roof is 15 years old and the policy owner s deductible is 1 of insured amount 1 000.
Let s say it will cost 20 000 to replace your 10 year old roof after hail damage and your home policy has a 3 000 deductible.
This is usually done with a depreciation schedule.
Under the new law effective september 1 violators could get up to a 2 000 fine and up to six months in jail.
It is a win for reputable contractors as it will punish contractors who waive or otherwise don t collect insurance deductibles from their clients.
Replacement cost value rcv provisions.
If a roof repair cost 6 000 and a homeowner had a 1 000 deductible adjusters would just cut the homeowner a check for 5 000 subtracting the deductible cost.
A home insured for 100 000 has a totaled roof from a hail storm and the cost to replace the roofing system replacement cost value is 10 000.
Today most homeowners have replacement cost value rcv provisions in their insurance policies.
This applies even to hail resistant roofs such as slate concrete and ceramic tile.
Today that s not the case.
A policy with actual cash value coverage will take into account the age of your roof.
To get the job texas roofers often offer homeowners a free roof by agreeing to pay the homeowner s insurance deductible.
