If you are a resident of Oklahoma City and have recently experienced property damage that requires roof repair or replacement, you may be wondering if roofing companies in OKC can pay for your insurance deductible.
The answer to this question is no, roofing companies cannot pay your insurance deductible.
While this practice has always been frowned upon, the recent passing of House Bill 1940 by the Oklahoma House of Representatives made it law in 2022. This bill specifically states that any contractor or third-party company cannot waive or pay any portion of a policyholder’s deductible when replacing a roof as a result of an insurance claim.
What Is The Oklahoma Deductible Law?
House Bill 1940, also known as the Oklahoma Deductible Law, is a piece of legislation passed by the Oklahoma House of Representatives that stops roofing contractors from being able to pay your insurance deductible when replacing a roof as a result of a property damage claim.
Why Was The Oklahoma Deductible Law Passed?
The passing of House Bill 1940 is an effort to prevent fraudulent activities in the roofing industry in Oklahoma City. Some roofing companies offer to pay insurance deductibles as an incentive to get a homeowner’s business. This is most commonly seen after a widespread severe weather event, like a hail storm or tornado.
In most cases, the roofing company will offer to “handle the insurance claim” for the homeowner and offer to pay your insurance deductible during the claim process. For unsuspecting homeowners, this can seem like a good deal and relieve the stress of having to file a claim.
However, having a roofing company pay your insurance deductible is considered insurance fraud.
While a roofing company may say they are paying the deductible, they are not. What usually happens is they increase their estimate by what the deductible is. So if a homeowner’s deductible is $2,000, they increase repair costs by that amount. When the insurance company pays the claim, the roofing contractor breaks even, and the insurance company foots the bill.
Because insurance policies require homeowners to pay their deductible, and they are not when participating in this scenario, it is considered insurance fraud. It also leads to overcharging by roofing companies, resulting in higher premiums for policyholders.
What Are The Consequences?
If a contractor violates the Oklahoma Deductible law, the insurer will not be required to consider the contractor’s estimate. This could cause problems for the homeowner and may require them to find a new roofer for the job. That the law does not specify a fine or jail time associated with breaking the law as some states do, and insurance carriers have the option to report the contractor to the state.
What If You Can’t Afford To Pay Your Insurance Deductible?
If you have property damage that requires roof repair or replacement, it is important to understand how insurance deductibles work. A deductible is the amount of money the policyholder is responsible for paying before the insurance company covers the rest of the repair or replacement costs. In most cases, the policyholder is required to pay the deductible before the roofing company can start any work.
If you can’t afford to pay your insurance deductible, you can finance the amount owed either through your bank or a roofing company that has in-house financing.
Key Takeaways About The Oklahoma Deductible Law
It’s always a good idea to know what your deductible amount is prior to getting an insurance policy. Make sure to ask your agent if different deductibles apply to specific damages, like hail! Sometimes those deductible amounts will be much higher than if you were filing a standard claim.
In addition, all OKC homeowners should check policy and deductible limits at least once a year. Shopping around and getting multiple quotes may time, but it’s worth it to ensure you are paying a fair amount and will be fully covered should you have to file a claim.
While a roofing company cannot pay your insurance deductible, you can finance the amount owed should you have to file a claim. It’s also a good idea to have home savings account to use in the event of an emergency and offset out-of-pocket costs.
Have questions or need more information? Reach out to our team of experts! With over ten years of roofing experience, we can help with any type of roofing problem, even emergency repairs. Call 405-895-9972 or schedule a free roof inspection online.
