On September 1st, 2019, HB2102 is the new deductible law that went into effect in the state of Texas. It is a win for reputable contractors as it will punish contractors who promise a rebate for all or part of a deductible, illegally waive a deductible, or otherwise don’t collect insurance deductibles from their clients.

After a major storm, contractors – including some scam artists – are quick to arrive on the scene. This leads to improper repairs, fake contracts, and other problems. 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.

Under Texas laws, this is considered a Class B misdemeanor and is punishable by up to 180 days in jail, a fine of as much as $2,000, or both.

If a contractor offers to waive a deductible, report it to the Texas Attorney General’s Consumer Protection Hotline at 1-800-621-0508.

Tips to avoid contractor fraud