It is one of the most common pitches in roofing after a storm, and it sounds like a favor. A salesman knocks, looks at the roof, and tells you he can “take care of” your deductible — you pay nothing, the insurance company pays everything, and the roof goes on next week.
It is not a favor. It is illegal in Missouri and Illinois, and the homeowner is the one left exposed when it unravels.
What does waiving a deductible actually mean?
Your deductible is the portion of a claim you are contractually required to pay. If your roof claim settles at $18,000 with a $2,000 deductible, your insurer pays $16,000 and you pay $2,000. That split is the agreement you signed with your insurance company.
When a contractor “waives” it, one of a few things is happening behind the scenes, and none of them are legal:
- He inflates the estimate by roughly the deductible amount so the insurer unknowingly covers your share.
- He bills the insurer for the full amount and simply never collects your portion, while certifying on paper that he did.
- He writes a fake “discount,” “rebate,” or “advertising credit” for exactly the deductible figure.
Each version misrepresents the real cost of the job to the insurance company. That is the definition of insurance fraud, and both states treat it that way.
Why is it illegal in both Missouri and Illinois?
Both states prohibit contractors from paying, absorbing or rebating a property insurance deductible on an insurance-funded repair. The laws exist because deductibles are what keep claim costs honest. If a homeowner has no financial stake in the job, there is nothing stopping inflated scopes, unnecessary replacements and padded invoices — and every policyholder in the state pays for that through premiums.
Enforcement is not theoretical. Insurers audit storm claims heavily in Missouri and Illinois specifically because both states see high hail volume, and a contractor advertising deductible assistance is a visible target.
How does the pitch usually sound?
It is rarely phrased as “let us commit fraud together.” Listen for:
- “We’ll work with you on the deductible.”
- “Your out-of-pocket will be zero.”
- “We’ll cover it as a storm discount.”
- “Just sign here and insurance handles the rest.”
- “We’ll give you a rebate for letting us put a sign in the yard.”
That last one is worth a second look. A genuine, modest referral or yard-sign credit is normal in a lot of trades. It becomes a problem when the number happens to match the deductible exactly.
What happens to the homeowner if the claim is audited?
People assume the contractor carries all the risk here. The homeowner signed the claim paperwork too.
- The claim can be denied or reversed. Money already paid can be demanded back.
- The policy can be cancelled or non-renewed, which makes the next policy considerably more expensive.
- The workmanship warranty usually dies with the contractor. Operations built on this model are frequently gone within a couple of seasons.
- You can be named in the fraud finding, because your signature is on the documents.
And the practical problem underneath all of it: a contractor who needs to break the law to win the job is telling you how he handles the parts of the work you cannot see from the ground.
What does a legitimate contractor do instead?
We collect the deductible. Every time. That is not us being rigid — it is the only version of this that leaves you protected.
What we can legitimately do is make the deductible manageable:
- Financing — payment plans so the deductible is not due as one lump sum.
- Accurate, itemized scoping so the claim captures everything genuinely damaged — vents, flashing, gutters, and the accessories adjusters routinely miss.
- Supplement work with your adjuster when the initial scope is short of what the repair actually requires.
- Written pricing up front so nothing changes after the tear-off starts.
Getting the claim scoped correctly is worth far more to most homeowners than a deductible dodge, and it is entirely legal.
How do you check a contractor before you sign?
- Ask directly: “Will you be collecting my deductible?” The answer should be an immediate yes.
- Read the contract for the word “deductible.” Any clause promising to cover, credit or rebate it is a red flag.
- Check how long they have been at one address. Storm-chase operations follow hail and leave.
- Verify licensing and insurance in your state, not a neighboring one.
- Confirm the warranty is backed by a company that will still exist. A lifetime workmanship warranty only means something if the business is still here.
What to do if you have already signed one
Do not panic, and do not let the work proceed on those terms. Ask for a corrected contract that shows the deductible as your responsibility. If the contractor refuses, that refusal tells you what you need to know — most contracts have a cancellation window, and your insurer’s claims department would rather hear about it from you first than find it in an audit.
If you want a second opinion on a roof claim someone else has already scoped, we will look at it and tell you straight. Call 1-800-564-6232 — answered 24 hours a day — or request a free inspection.
Frequently asked questions
Is it illegal for a roofer to waive my insurance deductible in Missouri?
Yes. Missouri prohibits contractors from waiving, absorbing or rebating a property insurance deductible on an insurance-funded repair. Both the contractor and the homeowner who knowingly participates can face consequences, including denial of the claim.
Is waiving a deductible illegal in Illinois too?
Yes. Illinois has the same prohibition. A contractor who offers to cover your deductible on a storm claim in Illinois is proposing insurance fraud, regardless of how the offer is worded.
What if the contractor calls it a discount or a rebate instead?
The label does not change what it is. If the credit, discount, rebate or yard-sign payment happens to equal your deductible amount, it is treated as waiving the deductible.
Can I get in trouble as the homeowner?
Yes. Your signature is on the claim documents. Homeowners have had claims reversed, policies cancelled or non-renewed, and have been named in fraud findings.
What can a roofer legally do to help with my deductible?
A contractor can offer financing or payment plans, scope the claim accurately so nothing damaged is left out, and pursue supplements with your adjuster. What they cannot do is pay it for you.