Texas Warns of Insurance Deductibles Scam Following Dallas Storms

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 displays the Texas Department of Insurance logo. Reports indicate the scam may be targeting older storm victims.

Under the new law, HB 2102, 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.”

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.