When storm damage hits your roof, your first call is often to your insurance company—quickly followed by a roofing contractor. Some homeowners, hoping to save on out-of-pocket expenses, are tempted by offers from roofing contractors who say they can “pay your insurance deductible.”
But is that legal? And what risks are involved?
This comprehensive guide by Litespeed Construction, a trusted roofing company based in Asheville, NC, breaks down the legality, risks, and implications of letting a roofing contractor pay your deductible. This topic is not only crucial for local homeowners but is making headlines nationwide due to increasing insurance fraud crackdowns and changing state laws.
Key Takeaways
💡Paying your insurance deductible is your legal responsibility — not your contractor’s.
💡Roofing contractors offering to “cover” or “waive” deductibles may be engaging in illegal practices.
💡Homeowners can face legal consequences, including voided claims or criminal charges, for participating in deductible scams.
💡Trusted roofing companies like Litespeed Construction help you navigate claims lawfully while providing high-quality repairs.
What Does "Pay Your Insurance Deductible" Mean?
When you file a homeowners insurance claim for roof damage, you’re typically responsible for a deductible — the amount you must pay out of pocket before insurance kicks in.
For example:
- If your deductible is $1,500 and your insurance payout is $10,000, the insurance company will pay $8,500, and you must pay the rest.
Some roofers illegally offer to absorb or “waive” this deductible to win your business. They may claim it’s a “discount,” but under many state laws, this can qualify as insurance fraud.
Is It Legal for a Roofer to Pay Your Insurance Deductible?
❌ In Most States, Including North Carolina — No, It's Not Legal
According to North Carolina General Statutes and guidance from the North Carolina Department of Insurance, homeowners must pay their insurance deductible themselves.
If a roofing contractor offers to “pay your insurance deductible,” they may:
- Inflate the repair invoice to cover your deductible.
- Submit false information to your insurance company.
- Use cheaper materials or cut corners to make up the difference.
All of these can lead to felony insurance fraud charges for both the contractor and the homeowner.
Reference: North Carolina General Statutes § 58-2-161 – outlines unlawful insurance practices and fraud.
National Perspective: States Cracking Down on Deductible Scams
Several states have recently passed strict legislation aimed at roofing fraud:
| State | Law Name / Reference | Key Point |
|---|---|---|
| Texas | HB 2102 (2019) | Makes it illegal for contractors to waive deductibles. |
| Florida | HB 305 (2021) | Prohibits roofing contractors from offering incentives. |
| Colorado | SB12-038 | Requires signed documentation verifying deductible paid. |
| North Carolina | NCGS § 58-2-161 | Engaging in insurance fraud is a felony offense. |
Why Roofers Offer to Waive Deductibles (And Why You Should Say No)
The Motivation:
Roofing is competitive, especially after storms. Some unethical contractors offer to “pay your insurance deductible” as a way to undercut legitimate businesses.
The Risk:
- You could be committing insurance fraud.
- Your insurance company could deny the entire claim.
- You could be liable for criminal charges.
At Litespeed Construction, we strongly advise homeowners to avoid any contractor who offers to waive or pay your deductible — it’s a red flag for unethical practices.
What Does the Law Say in North Carolina?
The North Carolina Department of Insurance emphasizes the homeowner’s role in claims:
“Insurance fraud is a crime. If a contractor offers to pay your deductible, you may be committing fraud if you accept.”
North Carolina also has a dedicated fraud investigation division, and insurance fraud is a Class H felony punishable by up to 30 months in prison.
Source: NC Department of Insurance – Insurance Fraud Division
How Litespeed Construction Helps You the Right Way
We understand how stressful storm damage and insurance claims can be. At Litespeed Construction, we prioritize legal, ethical, and transparent service.
Here’s how we support homeowners legally:
| Service | How It Helps |
|---|---|
| Free Roof Inspections | Get an honest, no-obligation assessment of damage. |
| Insurance Claim Assistance | We guide you through every step of the claim process. |
| Transparent Pricing | No gimmicks, no hidden costs, no illegal deductible waiving. |
| Licensed & Insured in NC | Fully compliant with North Carolina roofing regulations. |
Pros and Cons of Roofing Insurance Claims
| Pros | Cons |
|---|---|
| Helps cover significant repair or replacement costs | You must pay your deductible legally |
| Insurance support can ease financial burden | Potential for fraud if contractor is unethical |
| Increases roof lifespan when handled properly | Insurers may deny claims if misrepresented |
| Peace of mind when using a trusted contractor | Delays possible if claim documentation is inaccurate |
How to Spot Roofing Scams Involving Deductibles
Be cautious if a roofer says any of the following:
❌ “We’ll handle your deductible for you.”
❌ “We can discount the deductible on the invoice.”
❌ “We’ll bill your insurance more to cover your out-of-pocket.”
Instead, look for contractors who:
✅ Provide clear estimates and explain deductible responsibilities
✅ Help document damage for your insurance company
✅ Are licensed, bonded, and insured in your state
✅ Have solid local roofing reviews and proven references
FAQs about Roof Insurance Deductibles
No. Waiving deductibles is illegal in most states and considered insurance fraud.
You may be complicit in insurance fraud, risking legal charges and denied claims.
You must pay it directly to the roofing contractor out of pocket.
Yes, we guide you through the claim process while staying 100% compliant with the law.
Unfortunately, yes — especially after storms — but it's unethical and often illegal.
Insurance companies now require proof of deductible payment in many states.
Yes. NC has a dedicated fraud division investigating roofing scams and insurance fraud.
Yes. Contact the NC Department of Insurance Fraud Division or local authorities.
Yes, fully licensed, insured, and known for integrity in the Asheville roofing market.
Look for local licenses, reviews, and clear, honest communication.
Choose Integrity Over Shortcuts
The answer is clear: No, a roofing contractor cannot legally pay your insurance deductible. While some shady companies might tempt you with this offer, it could cost you much more in the long run — legally, financially, and ethically.
At Litespeed Construction, we’re proud to serve the Asheville, NC area with honesty and transparency. Our reputation is built on doing the job right — not cutting corners.
