What Texas law prohibits your roofer from doing with your insurance claim
§4102.163 reaches the advertising, not just the conduct. Here is what that means when you are choosing between roofing companies after a hail storm.
Texas Insurance Code §4102.163 prohibits a roofing contractor from acting as a public insurance adjuster, or advertising to adjust claims, for any property on which the contractor is providing or may provide roofing services. This applies whether or not the contractor holds an adjuster licence. Both civil and criminal penalties are available, and roofing contractors are not among the persons exempt from the licensing requirement.
In short: the roofer who offers to handle, fight, maximise or approve your claim is describing something Texas law does not permit them to do.
Last reviewed 15 August 2026 · This page describes published statute, a Texas Supreme Court decision and a state regulator’s bulletin. It is not legal advice.
Why the advertising itself is the violation
This is the part homeowners and, frankly, a lot of roofers get wrong. The statute is not only about conduct. It reaches the advertising.
In Texas Department of Insurance v. Stonewater Roofing, the Texas Supreme Court considered a roofing
contractor that did not hold a public adjuster licence, but whose website promoted it as the leader in insurance claim approval
, a
trusted roofing and insurance specialist
, highly experienced with the insurance claims process
,
and the developer of a system to help customers settle claims. The court held those advertising
activities fell within the statute. The contractor’s First Amendment and vagueness challenges failed.
Sources: Tex. Ins. Code §§4101.251, 4102.163, added by HB 1183; Texas Department of Insurance Commissioner’s Bulletin B-0011-17; Texas Department of Insurance v. Stonewater Roofing, Ltd., L.L.C.
What this means when you are choosing a contractor
You can read a roofing company’s website as a compliance document. It tells you something about their judgement before you have met them.
| If their site says | What that indicates |
|---|---|
Insurance specialist/ claims specialist | Holding out as an adjuster of claims, the exact phrasing at issue in Stonewater |
We handle your claim/ we deal with your insurance | Acting on behalf of the insured |
We will fight your insurance company | Negotiating settlement on your behalf |
We get your claim approved/ maximise your claim | Effecting settlement, and promising an outcome only your insurer controls |
We will cover your deductible | Separately prohibited, and named by the City of Arlington as a fraud indicator |
None of this makes the company a bad roofer. It does mean somebody wrote their marketing without reading the statute, and it is reasonable to wonder what else got skipped.
The deductible prohibition
Texas law prohibits a contractor from paying, waiving, absorbing or rebating a homeowner’s insurance deductible. There is no version of this that is a discount, a promotion or a favour.
The City of Arlington makes the point in its own guidance for homeowners choosing a contractor: it warns about roofers who offer to “take care of” a deductible and directs residents to confirm with their insurer that any such arrangement is not insurance fraud.
The mechanics are worth understanding, because the offer sounds generous. Your policy pays the cost of repair minus your deductible. If a contractor absorbs the deductible, the invoice submitted to the insurer is inflated by that amount relative to what you actually paid, which is a misrepresentation, and you are a party to it.
Source: City of Arlington, Planning & Development Services. Tips for Choosing a Contractor.
What a roofer is allowed to do
Quite a lot, and it is more useful than what they are not allowed to do:
- Inspect and document. Walk the roof, identify damage, photograph findings with dates attached.
- Produce a written itemised estimate in the format adjusters expect, for you to submit.
- Meet your adjuster on site and walk the roof with them, pointing out what was found.
- Explain how your policy structure works as general information, for instance, that Texas wind and hail deductibles are commonly a percentage of dwelling coverage rather than a flat amount.
- Do the work, pull the permit, and stand behind the workmanship.
What is missing from that list is anybody speaking to your insurer on your behalf, and anybody promising an outcome. If you want a professional advocate in the claim itself, that role exists: it is a licensed public adjuster, and it cannot be the same person doing the roofing.
The honest version reads better anyway
| Instead of | What an honest roofer says |
|---|---|
We handle your insurance claim | “We inspect the roof and give you a written, itemised estimate you can submit yourself.” |
We will fight your insurance company | “We document what we find with dated photographs, and we can meet your adjuster on site to walk the roof with them.” |
Get your claim approved | “Whether your damage meets your policy’s threshold is your insurer’s decision. What we can tell you is exactly what the roof needs and what it costs.” |
We will cover your deductible | “Texas law prohibits any roofer from paying or absorbing your deductible. Anyone offering to is asking you to participate in insurance fraud.” |
The right-hand column is the honest description of what a roofer legitimately does. It is also more specific, which is what you actually wanted to know.
Questions this raises
Can a roofing contractor negotiate my insurance claim in Texas?
No. Texas Insurance Code §4102.163 prohibits a roofing contractor from acting as a public adjuster for any property it is providing or may provide roofing services on.
This holds whether or not the contractor has an adjuster licence, and contractors are not among the persons exempt from the licensing requirement.
Is it illegal for a roofer to advertise insurance claim help in Texas?
The statute reaches advertising, not only conduct.
In TDI v. Stonewater Roofing, the Texas Supreme Court held that a roofer’s website describing it as an insurance specialist
highly experienced with the insurance claims process
fell within the statute. The First Amendment challenge failed.
Can a roofer pay my insurance deductible in Texas?
No. Texas law prohibits a contractor from paying, waiving, absorbing or rebating a homeowner’s insurance deductible.
The City of Arlington names the offer specifically in its homeowner guidance and directs residents to confirm with their insurer that any such arrangement is not insurance fraud.
What penalties apply under §4102.163?
Both civil and criminal penalties are available under the chapter.
The Texas Department of Insurance set out its position in Commissioner’s Bulletin B-0011-17.
Who can advocate for me in an insurance claim?
A licensed public insurance adjuster, and it cannot be the contractor doing your roof.
That separation is the entire point of the statute: the person assessing the loss should not be the person paid for the repair.
Have the roof inspected properly.
Documented, written up, and you keep the document whether or not you hire us.
Book your roof inspection
Tell us about the roof. We come out, measure, photograph what we find, and put it in writing.
We never ask you to sign anything at the inspection. Texas law prohibits any roofer from paying or absorbing your insurance deductible, we will not offer to, and you should walk away from anyone who does.
Get a real number on your roof.
Measured, itemised, in writing.
A on-site inspection with dated photographs of what we find, followed by a written itemised estimate you can hold, compare, and submit yourself.