Customer won't pay the $2,500 deductible: why a contractor can't just let it slide

The contractor laid out the problem in Reddit's r/Contractor forum. The job is done, the client passed along every dollar the insurance company paid, and the $2,500 still owed is the deductible, which the client asked to pay later. The contractor was considering writing it off. Texas, Florida and Colorado each have laws that cover that move.

Texas has the broadest rule. Section 27.02 of its Business and Commerce Code makes it a Class B misdemeanor for anyone selling goods or services paid from a property insurance claim to waive or absorb the insured's deductible, credit it back as a rebate, or help the customer avoid paying it in any other way, unless the insurer agrees. Contracts of $1,000 or more expected to be paid from a claim must carry a boldface notice of the rule. The Texas Department of Insurance says a contractor caught waiving deductibles faces fines or jail time.

Giving the customer time is allowed. Under Texas Insurance Code section 707.004, an insurer may hold back recoverable depreciation until it sees proof the deductible was paid, and a signed installment contract that obliges the homeowner to pay the whole deductible over time counts as that proof. Texas lists that document alongside a canceled check or a credit card statement.

Colorado and Florida aim their laws at roofers. In Colorado, a roofing contractor paid from an insurance claim may not advertise or promise that it will cover, waive or refund any share of the deductible; if one does, the insurer can ignore that contractor's estimate and the owner or insurer can sue for damages. Florida forbids offering a deductible waiver in exchange for a roof inspection or claim, with fines up to $10,000 per violation, and requires roofing ads to state that knowingly waiving a deductible to defraud is a third-degree felony.