Texans with property in locations that were hit by the severe weather that swept through Dallas and North Texas on Sunday, Oct. 20 are now targets of a scam involving insurance deductibles, insurance regulators say.
The Texas Department of Insurance says two separate deceptive flyers are being circulated in neighborhoods with tornado damage that attempt to lure storm victims into buying a service that claims to pay insurance deductibles.
“In Texas if you do not pay your insurance deductible go to jail!” one flyer states.
TDI says both of the deceptive fliers mention a new state law that makes it illegal for a contractor to waive an insurance deductible. One claims to be a “public service announcement” and uses the Texas Department of Insurance logo. Reports indicate the scam may be targeting older storm victims.
“Intentionally scaring and misleading people who are trying to recover from a devastating storm is unconscionable,” Insurance Commissioner Kent Sullivan said in a media release. “Homeowners were already required to pay the deductible. The new law helps protect them from bad contractors.”
Under the new law, it is illegal for contractors or roofers to offer to waive a deductible or promise a rebate for all or part of a deductible. It also allows insurance companies to request proof, such a receipt or canceled check, that the homeowner paid the deductible.
“One of the fliers used my name to appear as though I was quoted and endorsing the company,” State Rep. Giovanni Capriglione of Southlake said in a statement. “I never spoke to anyone with this company, never gave consent for a quote to be used, and I never gave an endorsement of this fraudulent company. I want to thank the Texas Department of Insurance for quickly alerting Texans to this fraudulent activity and helping keep those who just experienced storm damage safe from deceitful and dishonest scammers.”
After a major storm, contractors – including some scam artists – are quick to arrive on the scene. This can lead to shoddy repairs, fake contracts, and other problems. One selling point bad contractors often use is offering to waive or absorb the homeowner’s deductible. The contractor then cuts corners, uses lower quality products, or inflates the bill sent to the insurance company to cover the difference.
The law, HB 2102, by Rep. Capriglione, was effective Sept. 1. Under the new law, violators could get up to a $2,000 fine and up to six months in jail.
If a contractor offers to waive a deductible, property owners are advised to report it to the Texas Attorney General’s Consumer Protection Hotline at 1-800-621-0508. For an insurance question or help with a claim, call the Texas Department of Insurance Help Line at 1-800-252-3439.
Source: TDI
Related:
- 9 Tornadoes Confirmed in North Texas Outbreak; Insured Losses Pegged at $2B
- 3 Twisters Confirmed in North Texas; Governor Issues Disaster Declaration
- No Fatalities Reported After Dallas Hit by Tornado
Topics Texas Legislation Windstorm Contractors
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