New Texas Law Closes Fraud Loophole

DES PLAINES, Ill., Aug. 13, 2019 — The National Insurance Crime Bureau (NICB) today issued the following statement, attributed to its Vice President of Government Affairs Alan Haskins, regarding House Bill 2102, relating to deductibles.

“NICB’s core mission is to combat fraud. As fraud fighters we know that following any major hail or wind event, unscrupulous contractors swoop in and offer to waive a policyholder’s deductible leaving them at risk for incomplete or shoddy work. In many cases, the homeowners have no idea they have been involved in a fraud scheme by not paying their deductible. 

“HB 2102 closes the loophole by making it illegal for illegitimate contractors to promise homeowners that they can waive their deductible.

“This bill is a step in the right direction to protect consumers from certain roofing contractors, public adjusters, and plaintiffs’ attorneys who mislead storm victims and promise big payouts without any cost.

“It’s also important to talk with your insurance agent or company to review the terms of your insurance policies and to assess whether you have adequate home, auto, and other property coverage. If you do have property damage contact your insurance company or agent to begin the recovery process.”

The law goes into effect on September 1. 

Avoid Contractor Fraud Infographic

The following tips are also helpful:

• Get more than one estimate
• Don’t be pushed into signing a contract right away
• Get everything in writing
• Require references and check them out
• Ask to see the contractor’s driver’s license and write down the number and the license plate on his or her vehicle

More consumer protection information is available in our library of brochures.