Illegal for Commercial Roofers to Pay the Deductible

As a regular feature of all insurance policies, commercial property owners who are filing a claim for a roof replacement must pay their deductible. House Bill 1940, which was passed on November 1, 2022, expressly forbade contractors from absorbing or waiving a property owner’s deductible in order to safeguard customers from fraud.

Regardless of what some may say, it is against the law for any roofing company in Oklahoma to provide a commercial property owner a discount or cover their whole deductible. If a roofing firm pays the deductible of a commercial property owner, it may face fines, potential legal action, and serious violations of insurance fraud laws.

When a roofing firm covers the deductible, it disrupts the contractual relationship between the property owner and their insurance carrier, and both parties may be held guilty of insurance fraud. Both the roofing firm and the owner of the commercial property would be involved in the “adjusted” invoice that the insurance company received.

If commercial property owners intentionally permit a roofer to pay their insurance deductible, they may be subject to legal action. The insurance company may reject their claim, raise their premiums, or even cancel their policy if the insurance company discovers that both parties participated in a plan in which a contractor paid the deductible.

It is not advisable to engage a roofer who offers to waive or pay the deductible. Both parties may face significant fines for violating insurance fraud laws. Be cautious of contractors who claim they can “waive” your deductible — this is often a warning sign and could potentially violate the law.