Free roof offers that saw roofers pay homeowners insurance deductibles is going away
Roofers can no longer incentivize homeowners marketing a “no money out of pocket roof” to secure a job, especially in Texas and many other states as new state regulations are in place which prohibit such offers considering it illegal to do so. This will have an impact in various forms on roofing contractors and though apparently it seems unfair to both parties, it may prove to be a hidden advantage to homeowners.
How are homeowners taken advantage of?
Some roofing contractors, or “storm chasers”, amid the effects of hail or wind storms target people who are; senior citizens, budget conscious, or have just shifted in an area prone to such storms and do not know how much damage can occur. They convince them that the roofs of their houses are in need of repair, which in reality may not be the case. They offer seemingly large discounts, get paid and use cheap material when sometimes the repair was not needed at all.
How will the new regulations work?
The new laws are designed for the sole purposes of protection of such vulnerable citizens from storm chaser roofers. According to the stipulations of such bills, homeowners will have to pay their deductibles and the roofer is responsible for collecting it. Also, no symbiosis approach is permitted under the law, which before the law apparently created a win-win situation for both parties involved, but actually is insurance fraud on the part of both the contractor and the consumer.
Proposition of the regulations:
The proposition of the law is that the homeowner will not be benefited in terms of rebate or discounts which cover the deductibles not being paid by the insurance companies.
Why are the regulations in place?
Roofers who actually are reliable, competent and provide conforming services will not be deprived of their chance to get the contract signed by the customers just because they don’t offer a discount to cover the deductibles. This will also create the need of a third party who makes sure that the payments are made by the homeowners by offering various payment deals.
What are the requirements?
Now many insurance companies are ensuring that the deductible payments have been made by the homeowners by asking them for proof of payment before allowing the second insurance payment. In case of doubt, the contractor will be deprived of the insurance payment and if there is an urgency, the homeowner will have to make the whole payment, if not, the contractor has every right to file a lien. So, it is without a doubt an imperative that homeowners make the deductible payment as well as be able to prove that the payment has been made.
For customers (homeowners):
This will not be beneficial to homeowners in monetary terms but in a broader view, they will be saving themselves from storm chasers and cheap material, unwanted repairing costs and frauds. Also, if a roofing contractor still offers a discount by telling the customers that they will represent the deductible payments, the homeowner will know that the roofer is not above board or legitimate.
For roofers or roofing contractors:
Roofers who are legitimate and do not vanish after taking payments from homeowners will be benefited with getting paid and staying legal. For insurance companies:
This law gives authority to insurance companies to deny insurance claims and or payments if they identify the policyholder who is claiming that the deductible payments have been made. They can ask for bank statements, cancelled checks or even receipts from the roofers.
This misdemeanor will be more costly to the suppliers (roofers) than their customers because the homeowners will only be required to cover the deductibles if the fraud is confirmed, but the roofers can face penalties in the form of jail time, cancellation of work permit, or cash fines etc.