Texas law HB 2102

Heath Roofing and Construction

About HB 2102


“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 this Texas law for a person or business paid wholly or partly from proceeds of a property insurance claim to knowingly al- low the insured person to fail to pay. Or assist the insured person’s failure to pay, the applicable insurance deductible.

See SECTION 2. Business & Commerce Code is amended to read as follows: Section 27.02. “Goods or Services Paid for by Insurance Proceeds: Payment of Deductible Required”

However, the new law provides that it is a violation of this law if a contractor:

Pays for, Waives, Absorbs, Rebates, Credits or Offsets or Otherwise assists the insured in any other manner in avoiding monetary payment of the required insurance deductible or provides a good or service 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 to do so.

The new law creates a Class B misdemeanor offense of 180 days in county jail and a fine of up to $2000, for

(1) a business or person who sells goods or services to pro- vide *such a good or service in such a prohibited manner (violating contractor),

(2) an insured (policyholder) who commits an offense if the person, in connection with a first party claim knowingly submits or allows a claim to be submitted in violation of subsection c, (the violation section directly above) unless the insured person promptly notifies the insurer of the violation.

You can read the full bill here on the capitol.texas.gov website. 
Texas Law HB 2102
Heath Clay roofing and construction