HB 2102: Why "Free Roof" Pitches Are Illegal in Texas

If you live in the DFW hail belt, you have probably had a guy at your door after a storm offering to "take care of your deductible." It's a pitch that has been illegal in Texas since September 1, 2019. The pitch did not stop — but the law did get teeth.

House Bill 2102 took effect in 2019 and is now reflected in Texas Insurance Code Chapter 707 and Business and Commerce Code Section 27.02. This post explains what those provisions require, why "free roof" pitches are a problem for the homeowner, and what transparent work looks like on a real claim. None of this is legal advice — for advice about your policy or situation, talk to your insurer or a Texas attorney.

What HB 2102 actually says

Two things, plainly:

1. A Texas homeowner must pay the full deductible on a property insurance claim. Not a discounted deductible. Not "we'll work it out." The full amount.
2. A roofing contractor cannot waive, rebate, or absorb that deductible — directly or indirectly. No "free upgrades" priced into the claim. No matching the deductible with a rebate check. No padded estimates designed to cover it.

For a contract priced at $1,000 or more that is reasonably expected to be paid wholly or partly from a property-insurance claim payment, Section 27.02 requires a bold notice explaining that the insured must pay the deductible and that the seller may not help the insured avoid it. Chapter 707 also allows the insurer to request reasonable proof from the policyholder that the deductible was paid. The Texas Department of Insurance lists examples such as a canceled check, money-order receipt, credit-card statement, or payment-plan copy.

Why the "free roof" pitch is dangerous for the homeowner

The pitch sounds like a favor. It is not. Here is what actually happens when a roofer absorbs your deductible:

• The paperwork may contain false numbers. State consumer guidance warns that one avoidance method is an estimate higher than the actual repair cost, with the extra insurance payment used to offset the deductible. Rebates or credits tied to the deductible create the same concern.
• Your insurer may ask for proof. Chapter 707 permits the insurer to request reasonable evidence that you paid the deductible. A contract, invoice, and payment record that do not agree can create questions and delay resolution.
• Quality may be cut to fund the promise. The state warns that a contractor offering to waive the deductible may make up the difference by cutting corners or using lower-quality products. Require the exact underlayment, starter, flashing, ventilation, and warranty terms in writing.
• You lose a clean comparison between bids. A legitimate bid should show the work and price. Hidden rebates, phantom line items, or an undocumented "free upgrade" make it harder to know what will actually be installed.

How to check a roofing proposal before you sign

You do not need to interpret an insurance policy to spot basic inconsistencies. Put the contractor's proposal, the insurer's scope, and the deductible shown on your declarations or claim paperwork side by side. Then work through these checks:

1. Find the required notice. On a covered contract priced at $1,000 or more, look for the bold Texas deductible notice. Ask why it is missing if you do not see it.
2. Match every credit to a real reason. Manufacturer promotions or separately priced upgrades can be legitimate, but a credit that appears only because of your deductible needs an explanation in writing and confirmation from your insurer.
3. Demand an itemized scope. The proposal should identify materials, quantities, labor, ventilation, flashing, code items, disposal, warranties, and the total contract price. Avoid agreements that simply assign all claim funds without defining the work.
4. Keep a payment trail. Use a check, card, money order, or documented payment plan. Save the signed contract, invoices, change orders, and proof of each payment in the same claim folder.
5. Confirm who is handling which role. A contractor may inspect damage, prepare an estimate, document installed work, and answer construction questions. Texas law reserves licensed adjusting work for licensed professionals; a contractor performing the repairs may not determine coverage or represent you in a coverage dispute. The department's roofing and insurance guidance explains that boundary.

A trustworthy contractor should be comfortable slowing the process down long enough for you to read the documents, compare bids, and call your insurer. Pressure to sign immediately, leave blanks, or keep a side agreement off the invoice is a reason to stop.

Estimates, supplements, and invoices should tell the same story

An insurer's estimate and a contractor's proposal serve different purposes. The insurer estimates covered damage under the policy; the contractor prices the construction it is offering to perform. The totals may change as measurements are corrected or concealed conditions are discovered, but every change should have a documented reason.

A legitimate supplement can address an omitted code item, damaged decking found after tear-off, a revised material quantity, or another condition supported by measurements, photographs, invoices, or code documentation. The contractor can supply construction evidence. The insurer decides whether the policy covers the added amount. A supplement is not a pool of money that can be moved off the invoice to erase the deductible.

Discounts are not automatically the same thing as deductible avoidance, and homeowners should not have to guess. Ask the contractor to identify the business reason for any discount, place it on the written proposal, and explain it to the insurer before work begins. Do not accept an undisclosed cash rebate, gift card, advertising credit, sign allowance, referral payment, or "free" upgrade that is conditioned on hiding part of the deductible.

Use current Texas sources, not a salesperson's summary

The controlling language is available to the public. Insurance Code Chapter 707 states the policyholder's payment duty and describes proof an insurer may request. Business and Commerce Code Section 27.02 contains the required contract notice and prohibited seller conduct. The department translates those rules into homeowner guidance, including examples of inflated estimates, rebates, credits, door-to-door pressure, blank contracts, and large up-front payment requests. Read those sources yourself and save the links with your claim documents.

Questions an honest roofer should answer clearly

• What is the exact contract price? Ask for one number tied to a defined scope, plus a written change-order process for unforeseen decking, code, or material changes.
• How is my deductible shown? The answer should match your claim documents and should not depend on an off-invoice promise, yard-sign allowance, referral arrangement, or future rebate.
• Who communicates with the insurer? Clarify that the contractor will provide measurements, photographs, invoices, and construction explanations while you retain control of coverage decisions and settlement discussions.
• Which products will be installed? Record the manufacturer, product line, color, underlayment, starter, ventilation, flashing approach, and workmanship warranty instead of accepting broad phrases such as "insurance-grade materials."
• Can I verify the business? Confirm the legal company name, permanent street address, general-liability carrier, responsible project manager, subcontractor supervision, and warranty contact. Search public complaint history and call references yourself rather than relying only on screenshots, social profiles, or testimonials supplied by the salesperson.
• Where will project records be kept? Know how to obtain the signed agreement, certificates of insurance, permits when applicable, inspection photos, change orders, receipts, warranty registration, and final invoice after completion.

Clear answers do not guarantee a perfect project, but evasive answers reveal risk before materials arrive. Take the proposal home, compare it with another bid, verify references, and refuse to sign any document containing blanks.

Build a claim file before work begins

Organization makes questionable pricing easier to spot. Start with dated photographs of exterior damage and any related interior staining, then save the insurer's acknowledgment, claim number, adjuster estimate, deductible page, and correspondence. If temporary protection is needed, document the condition before tarping and retain mitigation receipts.

Add each contractor proposal without overwriting earlier versions. Keep product brochures, ventilation calculations, permit information, material delivery tickets, and certificates of insurance alongside the bids. When a scope changes, require a numbered change order that identifies the reason, added or removed work, price adjustment, and signatures. Verbal promises should be written into the agreement before installation.

During construction, photograph packaging labels and major stages that will later be concealed: deck repairs, underlayment, valley protection, flashing, penetrations, and ventilation openings. At completion, collect the final invoice, payment receipts, warranty documents, inspection record when applicable, and confirmation that remaining corrections were closed. A complete file cannot prevent every disagreement, but it gives the homeowner, contractor, and insurer the same factual timeline.

Do not confuse the deductible with depreciation

The deductible is the policyholder's required share of a covered loss. It is separate from recoverable depreciation, coverage limits, exclusions, and any amount still under review. On some replacement-cost claims, an insurer initially withholds depreciation and may release eligible funds after receiving completion evidence. That process does not erase or replace the deductible.

If a proposal describes withheld depreciation as the contractor's discount, or promises that a future supplement will reimburse your deductible, pause the transaction. Ask the insurer to explain each figure on the estimate and ask the contractor to show where the same figure appears in the construction price. The policy and carrier determine insurance payments; the signed construction documents should accurately record what the contractor charges.

What HB 2102 compliant work looks like

Most of the law is invisible if you are doing claim work the right way. Here is what compliance looks like in practice at Frame Restoration:

• Written, line-item scope — your contract specifies materials, labor, and price tied to the carrier's approved scope. No padding, no phantom line items.
• Deductible paid by you, recorded — typically a check or card payment that we document. We do not rebate it back. We do not credit it on the invoice.
• Pricing decoupled from the payout — our price is the scope's price. If the carrier underpays the claim, that is a coverage issue between you and your insurance company. We document; you decide whether to pursue a supplement.
• Required notice in the contract — qualifying Texas contracts must include the deductible notice in at least 12-point bold type. We include it.
• Records kept — cleared deductible payment, dated photos, the carrier's scope, our written scope. Anything the carrier asks for, we can produce.

Other contractor red flags worth checking

A deductible-waiver pitch is enough reason to stop. State consumer guidance also recommends checking for these separate warning signs:

• "Free inspection" with high-pressure same-day signing — a real inspection is free; the pressure isn't.
• "We'll take over the insurance process" — a contractor who will perform the work may document damage and estimate construction, but Texas law reserves licensed adjusting work for licensed professionals. Our claim-documentation page explains the line Frame follows.
• No verifiable local address or references — confirm where the company operates, who will answer warranty calls, and whether its references use working phone numbers.
• Demand for full payment up front — state guidance advises homeowners not to pay the entire bill before work begins. Disaster guidance adds special restrictions for certain out-of-town contractors seeking payment before starting work.

What to do if a roofer offers to cover your deductible

1. Don't sign anything.
2. Take notes — company name, salesperson name, vehicle plate, what was said.
3. Call your insurance company before agreeing to any credit or payment arrangement tied to the deductible.
4. Use the department's contractor-scam guidance. It explains where homeowners can report suspected deductible-waiver schemes.
5. Call a Frisco-based, HB 2102 compliant roofer. 214-308-9227 if you want one of ours.

The bottom line

HB 2102 protects the integrity of property claims by requiring the policyholder to pay the deductible and by prohibiting sellers from helping the policyholder avoid it without insurer consent. A "free roof" promise can depend on false pricing, an undisclosed credit, or reduced work. Anyone still pitching around the rule is telling you something important about how they document and price a project.

For a deeper read on how Texas law shapes the whole claim process — including the §4102.163 boundary that separates documentation from licensed claims work — see our Texas roof documentation service page. For the ACV vs RCV angle on older roofs, see our guide to ACV vs RCV on Texas roofs.

Frequently asked questions

What is Texas HB 2102?

HB 2102 took effect September 1, 2019. Texas Insurance Code Chapter 707 requires a property policyholder to pay the applicable deductible, while Business and Commerce Code Section 27.02 prohibits a seller from waiving, rebating, absorbing, or helping the insured avoid that payment without the insurer's consent.

Can a roofer offer me a free upgrade to cover my deductible?

Treat any upgrade, rebate, credit, or pricing arrangement tied to avoiding the deductible as a warning sign. Ask the contractor to itemize the upgrade separately and confirm the arrangement with your insurer before signing.

What if my roofer says they'll 'work it out' on the deductible?

Treat that as a hard stop. Ask for the complete price, scope, deductible amount, and every credit in writing. On a covered contract priced at $1,000 or more, look for the bold notice required by Section 27.02.

Does the contract have to say anything specific?

A contract priced at $1,000 or more and reasonably expected to be paid wholly or partly from a property-insurance claim payment must contain the deductible notice required by Section 27.02. Chapter 707 allows the insurer to request reasonable proof from the policyholder that the deductible was paid.

Can my roofer help with an insurance claim?

A roofer may inspect the property, estimate construction, document damage, and answer questions about the work. Texas law reserves licensed adjusting work for licensed professionals; a contractor who will perform the repairs may not determine coverage or represent you in a coverage dispute. Ask your insurer, attorney, or an appropriately licensed professional about coverage questions.

What proof might my insurer request?

State guidance says an insurer may ask for evidence such as a canceled check, money-order receipt, credit-card statement, or a copy of a payment plan. Keep those records with the signed contract, itemized invoices, and change orders.