When your home suffers storm damage — whether it’s a damaged roof, siding, gutters, or another part of your property — your first instinct is often to file a claim with your insurance company. You expect your insurance policy to cover the repairs, and you want a contractor you can trust to get the job done right.
But here’s something every homeowner must understand: you are legally required to pay your insurance deductible when filing a claim.
Trying to avoid that responsibility, or working with a contractor who offers to “waive” or “work around” the deductible, doesn’t just cut corners — it’s insurance fraud, plain and simple. And the consequences for both homeowners and contractors can be severe.
Let’s break down why paying your deductible is non-negotiable, what can happen if you don’t, and how to avoid falling into this costly legal trap.
💡 What is an Insurance Deductible?
An insurance deductible is the amount you, as the policyholder, are responsible for paying toward a covered claim before your insurance kicks in to pay the rest.
For example, if your roof replacement is approved at $15,000 and you have a $1,000 deductible, you are responsible for paying that $1,000 — not your insurance company and not your contractor.
🚨 What Happens If You Don’t Pay Your Deductible?
If a contractor offers to “cover” or “waive” your deductible, they often do it by inflating the invoice sent to your insurance company to cover that amount. For example, they might tell the insurance company the job cost $16,000, even though it actually cost $15,000 — using the extra $1,000 to cover your deductible.
That’s insurance fraud — and it’s illegal.
Fraud can also occur if you, as the homeowner, knowingly allow a contractor to submit false invoices, “free upgrades,” or disguised discounts to offset the deductible. Even if you didn’t think you were doing anything wrong, you can still be held legally liable.
⚖️ Legal Penalties and Consequences
The penalties for insurance fraud vary by state but can include:
Criminal Charges — Insurance fraud is often classified as a felony. You could face criminal prosecution, resulting in a permanent record.
Fines — Homeowners and contractors can face hefty fines, sometimes ranging from $5,000 to over $50,000, depending on the severity of the offense.
Restitution and Repayment — You may be required to repay the insurance company for any fraudulent payments.
Jail Time — In some cases, both homeowners and contractors involved in fraud schemes can face prison sentences.
Civil Lawsuits — Insurance companies can pursue civil action to recover fraudulent payouts, leading to additional legal costs.
Loss of Coverage — Your insurance policy may be canceled, leaving you unprotected in future disasters.
Reputation Damage — Being involved in insurance fraud can hurt your standing in the community, damage your credit, and make it harder to secure future insurance.
🛑 Why You Should Never Trust a Contractor Who Offers to Waive Your Deductible
A reputable contractor will never offer to waive or hide your deductible. If someone does, consider it a red flag.
Contractors who suggest “no deductible required” are:
❌ Willing to commit fraud — putting both you and their business at risk.
❌ Likely cutting corners in other areas, such as using cheaper materials, leaving items off, or using unqualified labor.
❌ Not looking out for your best interests, but rather their own short-term gain.
✅ Your Role as a Homeowner
As the policyholder, it’s your legal and contractual responsibility to pay your deductible. This is not an optional fee or something your contractor can absorb — it’s part of your agreement with your insurance company.
Before you hire a contractor, ask clear questions about how they handle deductibles. If they offer to “waive it,” walk away. Protect yourself, your home, and your financial future.
💬 Final Thoughts
Your home is one of your biggest investments — don’t put it at risk by participating in or turning a blind eye to insurance fraud. Paying your deductible is not just about following the rules; it’s about protecting your rights, your reputation, and your peace of mind.
At Grand Rising Exteriors, we are proud to uphold the highest standards of honesty, integrity, and professionalism. We are here to help guide you through the insurance process the right way — no shortcuts, no fraud, just solid work you can trust.
