Use this checklist when a contractor knocks after hail or high wind. Each item comes from the Texas Department of Insurance (TDI), the Texas Attorney General or the law itself.
1. Get at least three written bids
Get three or more written bids before you hire. TDI says three bids help you spot offers that are too high or too good to be true. Each bid should show the company’s phone number and address.
TDI warns that out-of-town scam artists may be the first at your door after a disaster. The Attorney General suggests a contractor with an established physical address, and warns about a low-ball bid.
2. Read everything, and never sign a blank
Read every page before you sign. TDI says scammers may label a contract as an estimate or a release. Never sign a contract with blank spaces, which can be filled in later with higher costs or different work.
The Attorney General adds: do not let anyone rush you, put every promise in the written contract, and keep copies of everything you sign. For the terms to look for, see what a Texas remodeling contract should include.
3. Refuse “value of insurance proceeds” contracts
Do not sign a contract that says you agree to the listed repairs “for the value of insurance proceeds.” TDI calls that misleading language. The contract should list the materials the contractor will use.
4. Pay in stages, never in full up front
Be wary of a contractor who asks for a large or full down payment. TDI says, “Never pay the entire bill up front.” Pay by check or credit card, not cash, so you have a record. The Attorney General says to tie payments to finished stages. Do not pay in full until the work is complete and you have inspected it.
5. Know the disaster payment rule
After a declared natural disaster, many storm contractors may not require payment before they start. Texas Business and Commerce Code chapter 58 covers paid work to remove, clean, demolish, rebuild or treat property a natural disaster damaged. It applies once the governor or a county judge declares a disaster.
Under §58.003, the contractor:
- Must put the contract in writing.
- May not require full or partial payment before work begins.
- May not require a partial payment larger than an amount reasonably proportionate to the work done, including materials delivered.
- Must state these limits in the contract in bold type of at least 10 points.
The rule exempts a contractor with an established local address (§58.002). It must be a physical business address in your county or a county next to it, held for at least one year before the contract. Ask for that address and how long the business has used it. You cannot waive chapter 58 (§58.005), and a violation is a deceptive act under the Deceptive Trade Practices Act (§58.004).
These sources do not show which counties are under a declaration. Ask your county judge’s office or city emergency management office.
6. Walk away from any deductible waiver or rebate
A contractor may not pay, waive or rebate your insurance deductible. Texas Business and Commerce Code §27.02(c) covers a seller paid from a property insurance claim. Without the insurer’s consent, the seller may not pay, waive, absorb or decline to collect your deductible. It also may not give a rebate or credit that offsets it, or help you avoid it any other way.
Advertising or promising the deal is an offense too. Under §27.02(d), it is a Class B misdemeanor: up to a $2,000 fine, up to 180 days in jail, or both (Penal Code §12.22). TDI’s 2019 article on the law says up to a $2,000 fine and up to six months in jail.
TDI says some contractors hide the deductible by inflating the estimate. Your insurer may ask for proof that you paid it. If a contractor offers a waiver, TDI says to find a new contractor and talk to your insurer.
7. Look for the deductible notice in the contract
Section 27.02(b) covers contracts of $1,000 or more reasonably expected to be paid wholly or partly from a property insurance claim. They must carry a notice in at least 12-point bold type. It says Texas law requires you to pay your deductible, and a seller paid from your claim may not help you skip it. If the notice is missing, ask why before you sign.
8. Use the 3-day right to cancel a door-to-door sale
If you signed at your door, you may be able to cancel. Texas Business and Commerce Code chapter 601 covers sales where the seller personally solicits you and you agree away from its place of business. It applies to goods or services over $25 (§601.002). Under chapter 601:
- You may cancel until midnight of the third business day after you sign (§601.051).
- The seller must give you a dated copy with its name and address, and a 10-point bold cancellation statement by your signature (§601.052).
- Two copies of a completed Notice of Cancellation form must be attached (§601.053).
- The seller must tell you about the right out loud (§601.152).
- After a valid notice, the seller has 10 business days to refund you (§601.154).
Sales negotiated at a fixed business location are exempt (§601.002(b)). A violation is a deceptive act under the Deceptive Trade Practices Act (§601.204).
9. Check the contractor and the coverage
Verify the contractor before you pay. TDI says to check the Better Business Bureau and references. Ask for the certificate of insurance and bond certification, then call the companies listed to confirm coverage. The Attorney General says to confirm disability and workers’ compensation insurance, since an uninsured contractor could leave you liable for accidents.
Texas licenses electrical and plumbing work. TDI says to check plumbers with the Texas State Board of Plumbing Examiners (TSBPE). It says electricians may be licensed through TDLR.
In a pre-1978 home, paid work that disturbs painted surfaces needs an EPA-certified firm (40 CFR Part 745). Small jobs are exempt: 6 square feet or less of paint per room inside, or 20 square feet or less outside. Window replacement and demolition of painted surfaces do not qualify. After a disaster, an EPA emergency provision exempts firms from some requirements. Ask EPA which ones.
For the full set of checks, see how to check a DFW contractor. To see what the repair work covers, read about storm damage repair.
10. Report a scam to the right agency
Send each problem to the agency that handles it:
- Deductible waiver offer: tell your insurer, then report it to the Texas Attorney General, as TDI advises.
- Contracting scam: TDI says to report it to local law enforcement.
- Padded or false insurance claim: use the NAIC fraud report linked on TDI’s fraud page.
- Any deceptive storm sale: file a consumer complaint online with the Texas Attorney General.
- Your insurer’s claim decision: TDI’s complaint process handles claim denials and payment amounts, not its fraud unit.
Save the contract, bids, receipts and flyers for your report.