The Costs of Insurance Fraud in Texas

Over the past few years, Texas has had many problems with roofing scammers and deductible fraud. Most people are not intentionally trying to commit fraud oaks might have been tricked into doing it without realizing it. It’s important to have an understanding of what is okay or not okay when dealing with insurance claims. Luckily, there are plenty of resources to help any homeowner defend themselves from scammers tricking them and potentially getting them into trouble. Honey Bees Roofing & Solar is an expert on all things roofing and has plenty of tips to help you avoid trouble.

What is Deductible Fraud?

Deductible fraud is the deliberate act of inflating the amount of a loss or damage to collect more money from an insurance company. For example, someone who files a claim for a stolen television worth $500 might deliberately inflate the value to $1,000 in order to receive a larger payout. While this may seem like a victimless crime, it ultimately drives up the cost of insurance for everyone. In addition, it can be difficult to detect, as insurance companies often rely on the honesty of claimants. Plus, it’s illegal and can give you a steep fine. As a result, deductible fraud is a serious problem that needs to be addressed.

How is Deductible Fraud a Prevalent Issue?

It may seem simple to avoid deductible fraud, but scammers have put people into situations where they unknowingly break the law. Roofing scammers will come to a home after there has been clear storm damage to the roof. They’ll work on the roof, and then say that they have a way to simply “waive” the deductible so that you don’t have to worry about paying it. Then, when the homeowner submits the bill to their insurance provider, they accidentally commit insurance fraud by misrepresenting the costs associated with the invoice, since the contractors purposely set it up that way. The homeowner will get stuck with deductible fraud, and the scammers will get off free because they aren’t the ones who sent in the bill.

Red Flags To Watch Out For

There are many red flags that surround these scammers. First of all, if a roofer is going door-to-door after a large storm, or doesn’t have a local office, then they’re a “storm chaser.” These roofers go from town to town, following major storms. After the storm, they’ll do roofing work for entire neighborhoods, but then do a poor job on the roof and leave soon after. Another red flag is anyone who claims they can waive your deductible. It is illegal to not pay your insurance deductible! There are many ways that a scammer may claim that the deductible is able to be waived, but they’re all lies. There is no way around it, the deductible must be paid. Also, make sure to check out a roofing contractor before you hire them by checking their reviews and previous projects. Go with your gut! If it seems like a roofing contractor is being shady, then there’s a good chance that they are.

Call a Professional

No one wants to fall for a roofing scam or accidentally commit insurance fraud. Luckily, the 2019 deductible law in Texas has been helping homeowners and roofers alike. Waiving roofing deductibles is one shady practice used by scammers, but there are others to watch out for. However, contact us if you’re looking for a reputable roofing contractor!

If you’re interested in installing a new roof or want a no-pressure educational conversation about solar energy, contact Honey Bees Roofing & Solar online or call us at817-668-6131! We offer free roofing inspections so we can help you choose the best roofing option for your home. We are one of the leading solar installers for the Burleson, Fort Worth, area and can help you take steps to have one of the most energy-efficient options possible. If you want a lower energy bill, keep your home cooler, or help the environment with energy-efficient roofing options, don’t hesitate to contact us!