Is it Legal for My Roofer to Waive or Absorb My Insurance Deductible
The short answer is, NO. While some roofers may offer to absorb your deductibles during repairs to save you money, the option is not strictly legal. It is easy to think twice about this option when a roofer offers it to you. This is for the simple fact that taking the offer will steeply discount their services or they may offer to pay for their business. Although it is tempting, this option is very problematic.
Why it is problematic
Allowing a manufacturer to absorb or waive insurance deductibles is being dishonest. A home insurance policy is a contract between a homeowner and an insurer. The contract allows you to pay annual premiums to ensure home damages are taken care of minus the cost of their deductibles. The insurance company is protected from paying for your home if you breach the contract. A breach happens when you lie to the insurer by colluding with the roofer.
It used to be legit
At this point, you might be wondering why the practice of a roofer offering to absorb insurance deductible is still a thing if it is illegal. The answer is it used to be legitimate in the past. As recently as less than two decades ago, homeowners were given lump sums of money to cover the cost of damages, and deductibles were removed from the total. It was even legal for the homeowner to keep the deductible and it was left up to them to decide whether the repairs needed to be done or not.
Insurance claims today work differently. Instead of getting a lump-sum payment for the work done, funds for a replacement can come in up to 4 separate checks that bear the name of the mortgagee of the property as the cosigner. As a result of this, the only way to get money from an insurance claim is by using a licensed contractor to bill the insurance company and the mortgage company for work done.
For the contractor to waive deductibles, they are simply being untruthful to the insurance and mortgage companies. No one from your insurance carrier will ever tell you the practice is acceptable.