My Roofing Contractor Wants to Pay My Deductible

Photo Credit: Owens Corning

If your home was affected by the hailstorm on March 27, 2020 in Jefferson City, Missouri then you were likely inundated with roofing salespeople trying to earn your business.  Some of those salespeople were honest, local to Jefferson City and have well established business; some however were storm-chasing contractors who may have promised to waive/absorb your deductible or offered other incentives.  The saying goes “if it’s seems to good to be true, it probably is.”  Read on why you don’t want to hire that contractor:

It is Illegal.

Buyer beware.  Missouri Senate Bill NO. 101 passed in May 2011 makes it illegal for roofing/exterior contractors to offer to pay a homeowner’s deductible or offer other incentives.  The description straight from the Bill:

A residential contractor shall not advertise or promise to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of goods or services.  As used in this section, a promise to pay or rebate includes granting an allowance or offering any discount against the fees to be charged or paying the insured or any person directly or indirectly associated with the property any form of compensation, gift, prize, bonus, coupon, credit, referral fee or other item of monetary value for any reason.

Basically, the contractor is committing insurance fraud.  Is that someone you can trust to do work on one of the most important parts of your house – your roof? 

Replacement Cost Policy and Depreciation.

If you allow a contractor to pay your deductible you are losing out on your depreciation money (if you have a replacement cost policy.)  How do you lose that money?

If you select a contractor that bills you less than the insurance company’s estimate, the insurance company will offset your depreciation amount to the lower cost.  Basically, you lose out on some or all your depreciation money.  Due to changes in the paying of claims and Senate Bill 101, a homeowner no longer can “pocket” extra money.   

Or your unreputable contractor will overbill for the replacement/repairs to absorb your deductible.  Which again is illegal since they inflated the cost of their services. 

Not worth it.

Think about this:  if it’s discovered (which is very possible) that your unreputable contractor did in fact pay or provided inducements for your deductible, you as the homeowner are also committing insurance fraud.  This could cause serious problems for you.  The least being cancellation of your homeowner’s policy and the most being criminal charges. 

Would you trust a contractor that is willing to commit fraud? 

To protect yourself, choose a local well-established contractor in the Jefferson City, Missouri area. 

Our owner, Larry Herzing has been in the roofing business for over 20 years.  His passion is educating homeowners, protecting them from stormers and supporting our communities that we serve.  To learn more about our story visit our website