Everyone
has different needs and situations when it comes to finances. To safeguard
that everyone can afford a roof when
they need one without immense pressure and risk with a high interest loan,
Roofing Professionals of Texas offers low interest, low payment financing
options. Whether your credit is perfect or you have gone through a bumpy
patch, we offer a financing option perfect for your needs. Our financing options
range from partnerships with banks such as OneMain Financial, AVANT, Lending
Club, LendingPoint, Marcus By Goldman Sachs, Payoff, Prosper, SoFi, Upgrade,
BestEgg. To apply, simply speak with your Dallas Fort Worth roofing
professional at the time of your estimate.
It
is a violation of Texas law for a seller of goods or services who reasonably
expects to be paid wholly or partly from the proceeds of a property insurance
claim to knowingly allow the insured person to fail to pay, or assist the
insured person's failure to pay, the applicable insurance deductible.
HB2102 is the new deductible law that went into effect September 1st, 2019,
only 3 months after it was signed by the governor. It is not a completely new
law, but rather a clarification and more carefully-worded version of the
deductibles law that has been around for years.
What the law says:
Sec. 27.02. GOODS OR SERVICES PAID FOR BY INSURANCE PROCEEDS:
PAYMENT OF DEDUCTIBLE REQUIRED [CERTAIN INSURANCE CLAIMS FOR EXCESSIVE
CHARGES].
(A) In this section, "property insurance policy"
has the meaning assigned by Section 707.001, Insurance Code.
(B) A contract to provide a good or service that is
reasonably expected to be paid wholly or partly from the proceeds of a claim
under a property insurance policy and that has a contract price of $1,000 or
more must contain the following notice in at least 12-point boldfaced type:
"Texas law requires a person insured under a property insurance policy to
pay any deductible applicable to a claim made under the policy. It is a
violation of Texas law for a seller of goods or services who reasonably expects
to be paid wholly or partly from the proceeds of a property insurance claim to
knowingly allow the insured person to fail to pay, or assist the insured
person's failure to pay, the applicable insurance deductible."
If you have a lot of contracts already printed without this new
language, you may include this part of the law on an addendum for your customer
to sign. When you do print new contracts, make sure you include this newly
required language.
What you cannot do:
(C) A person who sells goods or services commits an offense
if the person:
(1) Advertises or promises to provide a good or service to
an insured under a property insurance policy in a transaction in which:
(A) The good or service will be paid for by the insured from
the proceeds of a property insurance claim; and
(B) The person selling the good or service will, without the
insurer's consent:
(i) Pay, waive, absorb, or otherwise decline to charge or
collect the amount of the insured's deductible;
(ii) Provide a rebate or credit in connection with the sale
of the good or service that will offset all or part of the amount paid by the
insured as a deductible; or
(iii) In any other manner assist the insured in avoiding
monetary payment of the required insurance deductible; or
(2) Provides a good or service to an insured under a
property insurance policy knowing that the insured will pay for the good or
service with the proceeds of a claim under the policy and, without the
insurer's consent:
(A) Pays, waives, absorbs, or otherwise declines to charge
or collect the amount of the insured's deductible;
(B) Provides a rebate or credit in connection with the sale
of the good or service that offsets all or part of the amount paid by the
insured as a deductible; or
(C) In any other manner assists the insured in avoiding
monetary payment of the required insurance deductible.
(D) An offense under this section is a Class B misdemeanor.
Under Texas's laws, a Class B misdemeanor is punishable by up to
180 days in jail, a fine of as much as $2,000, or both. For example, possession
of up to two ounces of marijuana is a Class B misdemeanor. (Tex. Penal Code
Ann. § 12.22 (2019).)
What does this mean to you?
Applies whether you are promising to waive or if you are actually
waving.
Prohibits paying, waving, absorbing or in any way declining to
charge or collect the deductible.
Prohibits rebates or credits that will offset all or part of the
deductible.
Prohibits in any manner assisting the insured in avoiding payment
of their deductible.
What is the insured's responsibility?
Sec. 707.002. PAYMENT OF DEDUCTIBLE REQUIRED. A person
insured under a property insurance policy shall pay any deductible applicable
to a first-party claim made under the policy.
Sec. 707.004. REASONABLE PROOF OF PAYMENT. An insurer
that issues a property insurance policy with replacement cost coverage may
refuse to pay a claim for withheld recoverable depreciation or a replacement
cost hold back under the policy until the insurer receives reasonable proof of
payment by the policyholder of any deductible applicable to the claim.
Reasonable proof of payment includes a canceled check, money order receipt,
credit card statement, or copy of an executed installment plan contract or
other financing arrangement that requires full payment of the deductible over
time.
It is the insured’s responsibility to submit proof of a separate
deductible payment. Deductible payment must be a separate payment and be the
first payment collected.
Our opinion
Since the insurance companies lobbied extremely hard to get this
law passed, we believe that they will start asking for proof of deductible
payment before releasing recoverable depreciation immediately. Since this is
now part of the insurance code, TDI will be able to investigate any violations.
Though they cannot prosecute the contractor, they can investigate and assess
fines for any violations. In addition, since they are a governing body, they do
carry a lot of weight with the DA’s office and could suggest charges be filed
for violators.
Fortunately, the courts are so overloaded it may be unlikely in
larger counties, but we wouldn’t be surprised if it happened in some smaller
counties. Hopefully, this law will help legitimate contractors get paid the
entire insurance claim and stop the less reputable contractors from stealing reputable Roofer’s customers.
Our suggestions:
Have owner affirmatively represent whether insurance proceeds are
being used and, if so, what is the amount of their deductible.
Provide a section on your contract for your customer to check a
box that indicates whether or not they are paying with insurance proceeds; a
blank line for them to write in the amount of the deductible, and a place for
them to initial that section.
Have language in your contract that requires the customer to
assist with collection of depreciation/hold back (owner required to provide
proof of deductible).
Have warning language from law in your contract and a place for
customer to initial.
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The
Lane Law Firm
