If you’re a homeowner in Knoxville, TN, who needs roofing repairs or replacement, chances are you’ve asked yourself whether your roofer can legally pay your insurance deductible.
This is a hot topic in the roofing and insurance industries, and it’s crucial to know the rules to avoid legal trouble or falling victim to scams.
What Does “Paying Your Deductible” Mean?
When you file a roofing claim with your homeowner’s insurance, the deductible is the amount you’re responsible for paying out of pocket before the insurance kicks in. This can range anywhere from $500 to $5,000 depending on your policy. Some roofers might offer to cover this deductible as an incentive for you to choose their services, but is this actually legal?
The short answer is no, it’s not legal in most states, including Tennessee. Let’s dive into why this is the case, what the legal landscape looks like, and what you should do as a responsible homeowner.
The Legal Landscape in Tennessee
In Tennessee, and many other states, offering to pay, waive, or rebate your deductible can be considered insurance fraud. Roofing contractors who engage in this practice often inflate the cost of repairs to cover the deductible amount, submitting fraudulent claims to your insurance company. This practice not only violates state laws but also puts both homeowners and contractors at risk of fines, lawsuits, and worse—criminal charges.
Tennessee law states that when an insurance claim is filed, the insured (you, the homeowner) must fulfill your financial obligations, which include paying the deductible. Roofers who encourage otherwise may face penalties for misleading consumers and insurance companies.
Why Paying Your Deductible is Illegal
- Insurance Fraud: As mentioned, roofing companies offering to cover the deductible often have to pad the repair bill to make up for it. They submit inflated invoices to the insurance company, which is not just unethical but illegal.
- Undermines Trust: Insurance companies rely on accurate information to assess claims. When roofers manipulate this process, it leads to higher premiums for everyone, damages the reputation of both the contractor and homeowner, and reduces overall trust in the system.
- Homeowner Liability: As the policyholder, you could also be held liable if your roofer engages in fraudulent behavior. Homeowners may face legal actions or be required to repay the inflated amount to the insurance company.
