Introduction: Understanding insurance deductibles is crucial for policyholders, and the recently enacted HB2102 Texas deductibles law is transforming the landscape for roofing contractors, such as Helius Roofing in Celina, TX. This law, effective since September 1, 2019, aims to curb deceptive practices where some contractors bypass or cover insurance deductibles, bringing accountability to the industry.
Overview of HB2102 Texas Deductibles Law: HB2102, signed into law just three months before taking effect, refines existing regulations pertaining to insurance deductibles. The law specifically addresses contracts for goods or services expected to be funded, in part or whole, by property insurance claims exceeding $1,000. It mandates a notice in contracts, making it clear that policyholders must fulfill their insurance deductibles.
Prohibitions and Penalties: The law prohibits contractors from advertising or promising to cover deductibles, providing rebates, or assisting insured individuals in avoiding deductible payments. Violations are classified as Class B misdemeanors, punishable by up to 180 days in jail, a fine of $2,000, or both.
Impact on Roofers: For reputable roofing contractors like Helius Roofing, the HB2102 law is a positive development. It ensures fair practices and penalizes those who attempt to circumvent deductible payments. Roofers are advised to incorporate the required notice in their contracts and educate customers on the importance of fulfilling their deductible obligations.
Insured Responsibilities: Policyholders are reminded of their responsibility to pay deductibles and submit proof of payment to insurers. The law specifies acceptable proof, including canceled checks, money order receipts, credit card statements, or financing arrangements that confirm deductible payment.
Legal Implications and Suggestions: As insurance companies are likely to scrutinize deductible payments, roofing contractors should proactively address this issue. The Texas Department of Insurance (TDI) has the authority to investigate violations and impose fines. The Lane Law firm suggests roofing contractors take measures such as including specific sections in contracts, obtaining information about deductible amounts, and emphasizing the consequences of non-compliance.
Conclusion: The HB2102 Texas deductibles law serves as a protective measure for both policyholders and reputable roofing contractors like Helius Roofing in Celina, TX. By promoting transparency and accountability, this law aims to create a level playing field in the roofing industry, ensuring fair compensation for legitimate claims while deterring deceptive practices. Roofers are encouraged to stay informed and align their practices with the new legal requirements to maintain integrity in the business.
