# Your roof deductible: what you owe, and why nobody can waive it.

Mammoth Roofing & Exteriors · https://mammothroofs.com/guides/roof-insurance-deductibles/ · (210) 934-9074

The deductible is the part of every roof claim that is yours. Here is how the Texas percentage deductible is calculated, where it sits in a claim, why the roofer who offers to "cover it" is offering to break the law, and how to decide whether a claim is worth filing at all.

_7 min read · Updated September 30, 2026_

**Key points**

- Most Texas policies carry a separate wind and hail deductible written as a percentage of your dwelling coverage, usually 1% or 2%. On a $400,000 dwelling limit, 2% is $8,000 per claim.
- The deductible comes off the first payment. On a replacement cost policy you get the rest back after the work is done; on an actual cash value policy, depreciation comes off too and stays off.
- Since September 1, 2019, a Texas contractor who pays, waives, absorbs or rebates your deductible commits a Class B misdemeanor. The policyholder must pay it, the contract must say so, and the insurer can ask for proof.
- A repair that costs less than your deductible is not a claim. Get the roof graded first and do the arithmetic before you call your insurer.
- If the deductible is the problem, financing it is legal and common. Waiving it is neither.

## The number on your declarations page.

A deductible is the part of a claim you pay yourself. On a Texas homeowner's policy there are usually two: a flat dollar deductible for most losses, and a separate, larger one for wind and hail, written as a percentage of the amount the house is insured for. That second number is the one that decides whether a roof claim makes sense, and most homeowners find out what it is on the day they need it.

Find it now. It is on the declarations page, the first page or two of your policy, usually labeled "wind/hail deductible" or "windstorm and hail", next to Coverage A, the dwelling amount. If the line says 2%, and Coverage A says $400,000, your wind and hail deductible is $8,000. That is what you will owe on any hail claim, before anyone talks about depreciation.

## How a percentage deductible is calculated.

The percentage is applied to the dwelling coverage limit, not to the size of the claim. It does not scale down for a small roof or a small loss.

| Dwelling coverage (Coverage A) | 1% wind/hail deductible | 2% wind/hail deductible | 5% wind/hail deductible |
| --- | --- | --- | --- |
| $250,000 | $2,500 | $5,000 | $12,500 |
| $400,000 | $4,000 | $8,000 | $20,000 |
| $600,000 | $6,000 | $12,000 | $30,000 |

Two things follow from that arithmetic. First, as rebuilding costs rise and insurers raise Coverage A at renewal, the deductible rises with it, even though nothing about your roof has changed. Second, in the parts of Texas that see hail every year, 2% has become the common figure, and some carriers now write 5%. A home that once had a $1,000 deductible for everything can have an $8,000 hail deductible today without the owner ever having chosen it. Read the renewal.

## Where the deductible sits in a claim.

The Texas Department of Insurance uses this example, and so do we. A house insured for $200,000 with a 2% deductible ($4,000) needs a roof that costs $10,000 to replace.

- **Replacement cost policy:** the insurer pays $6,000 in total ($10,000 minus the $4,000 deductible). Usually in two payments: the depreciated value first, then the held-back depreciation once the work is finished and invoiced.
- **Actual cash value policy:** the insurer pays the depreciated value minus the deductible, and the depreciation never comes back. On the same roof at ten years old, valued at $7,000, that is $3,000 from the insurer and $7,000 from you. At twenty years old, valued at $4,000, the deductible eats the whole payment and the insurer pays nothing.

So the deductible is not the only number that matters, but it is the only one that is entirely yours whatever the policy says. The [actual cash value guide](https://mammothroofs.com/guides/actual-cash-value-vs-replacement-cost/) walks through the depreciation side.

## Why a roofer cannot waive it.

Texas closed this door in 2019. House Bill 2102 amended the Business and Commerce Code and added chapter 707 to the Insurance Code, and together they say:

- A person insured under a property policy **must pay** the deductible on a claim (Insurance Code §707.002).
- A contractor who expects to be paid from insurance proceeds and who **pays, waives, absorbs, rebates or otherwise declines to collect** the deductible commits a **Class B misdemeanor** (Business and Commerce Code §27.02).
- Any contract for work of $1,000 or more that will be paid from a claim must carry a **printed notice** that the policyholder is required to pay the deductible (Insurance Code §707.003).
- The insurer may ask for **reasonable proof** that you paid it, such as a canceled check, a card receipt or a copy of the executed contract, before it releases the rest of the claim (Insurance Code §707.004).

The law took effect on September 1, 2019. Every legitimate roofing contract in Texas has carried the notice since then. If the contract in front of you does not, that is your first warning.

## How the trick works, and who pays for it.

A roofer cannot make $8,000 disappear. What the "we'll cover your deductible" offer really means is one of three things:

- **The estimate is inflated** by the amount of the deductible, so the insurer is billed for money that was never spent. That is the insurance fraud the law is aimed at, and your name is on the claim.
- **The roof is cut** by the amount of the deductible: thinner underlayment or none, reused flashings, four nails instead of six, no ventilation, the cheapest shingle in the color you chose. You pay for it two winters later.
- **Both.**

There is a fourth cost that has nothing to do with the roof. If the insurer asks for proof of payment and you cannot produce it, the held-back depreciation does not get released, and a claim built on a waived deductible can be reopened. The roofer who made the offer is usually in another town by then.

Our rule is short: we never touch your deductible, we put the legal notice on every contract, and we give you the receipt your insurer may ask for. If another roofer's price is only lower once the deductible has "gone away", it is not lower.

## Is the claim worth filing?

Because the deductible is fixed and the repair is not, some storm damage is simply not a claim. A few wind-lifted shingles, a cracked pipe flashing and a dented vent might cost a few hundred dollars to repair. Filing a claim for that against an $8,000 deductible gains you nothing, and a claim on your record, even a small or denied one, can follow you at renewal.

The way to decide is to know the repair cost before you call the insurer. The free Roof Grade gives you that: attic first, every slope test-squared and photographed, a written repair scope and price. Then the arithmetic is simple.

| The written repair cost is | What we recommend |
| --- | --- |
| Less than your deductible | Repair it and keep the claim off your record. |
| A little more than your deductible | Usually still a repair; weigh the premium risk and the depreciation your policy applies. |
| Well above your deductible, with damage across the slopes | A claim is justified. The report is your evidence; we meet the adjuster on the roof. |

#### Know the number before you call your insurer.

The free Roof Grade puts the repair cost in writing so you can hold it against your deductible. If the roof is fine, the report says so.

[Get my free Roof Grade](#book)

## Legal ways to make the deductible easier.

Nothing in the law says the deductible has to be paid in one lump on day one. What it says is that it has to be paid by you.

- **Finance it.** Many homeowners finance only the deductible and any upgrades they chose, such as Class 4 shingles or the Forever Roof, through a third-party lender. Pre-qualifying takes a few minutes and does not affect your credit. Ask when you book.
- **Time it.** On a replacement cost policy the deductible is settled against the final invoice, after the work, when the second payment arrives. A written payment schedule is normal; a large deposit before materials arrive is not.
- **Upgrade at the same time.** A claim replaces like for like. If you were ever going to move to a Class 4 shingle or a metal roof, the day the old roof comes off is the cheapest day to do it, and the insurance discount for a Class 4 roof starts at the next renewal.
- **Ask about your deductible before the next storm.** A higher percentage lowers the premium and raises the risk. Your agent can show you both numbers side by side; this is a conversation to have in the calm, not the week after the hail.

## Frequently asked

Where do I find my wind and hail deductible?
On the declarations page of your policy, next to the dwelling coverage amount (Coverage A). It is written as a percentage; multiply it by Coverage A to get the dollar figure.

Is the deductible taken off the first check or the last?
The first. The insurer's first payment is the depreciated value of the roof minus the deductible. On a replacement cost policy the held-back depreciation comes with the second payment once the work is finished.

Can a roofer legally give me a discount that happens to equal my deductible?
No. The law covers paying, waiving, absorbing, rebating or otherwise declining to collect it, however it is labeled. A genuine discount is one you would get with no insurance claim at all, shown on the estimate before the claim is priced.

What proof of payment can my insurer ask for?
Reasonable proof: a canceled check, a card statement, a receipt, or a copy of the executed contract showing the amount you paid. Keep all of them.

Does Mammoth finance the deductible?
Through a third-party lender, yes. You can finance the deductible alone, or the deductible plus upgrades. The insurance payments still go to the roof; nothing about the claim changes.

#### Sources and notes

- Texas Department of Insurance, "Home insurance policies: replacement cost or actual cash value" (the $200,000 / 2% / $10,000 roof example) — [tdi.texas.gov](https://www.tdi.texas.gov/tips/home-insurance-policies-replacement-cost-or-actual-cash-value.html)

- Texas Department of Insurance, "Roofing and insurance: know the law" — [tdi.texas.gov](https://www.tdi.texas.gov/consumer/storms/roofing-and-insurance-know-the-law.html)

- Texas Business and Commerce Code §27.02, as amended by House Bill 2102 (86th Legislature), effective September 1, 2019 — [statutes.capitol.texas.gov](https://statutes.capitol.texas.gov/Docs/BC/htm/BC.27.htm)

- Texas Insurance Code chapter 707: §707.002 (payment of deductible required), §707.003 (the contract notice), §707.004 (reasonable proof of payment) — [statutes.capitol.texas.gov](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.707.htm)

- Percentage deductible practice in Texas (1%, 2% and 5% of Coverage A) as described by United Policyholders, a consumer non-profit — [uphelp.org](https://uphelp.org/texas-is-entering-peak-hail-season-and-most-homeowners-dont-understand-the-deductible-that-could-cost-them-thousands/)

Homeowner education from a roofing contractor, not legal or insurance advice. Your policy's own wording governs; read it, and ask your agent.