After the storm: how to avoid contractor scams in Houston
Published October 4, 2026
Do not sign anything at the door, never let a contractor touch your deductible, keep control of your insurance claim, and verify the license or insurance before any work starts. The companies that are still here next year are the ones to hire.
What a storm does to the market
Within days of a hurricane, a major flood or a hard freeze, Houston’s contractor market changes. Demand multiplies. Local companies are booked for weeks. Out-of-state crews arrive, often with no Texas license and no local insurance. Door-knockers work the neighborhoods with the most visible damage. Most of the harm homeowners suffer after a disaster comes from the contractor, not the storm.
The scams, by name
- Deductible waiving. A roofer offers to “cover” your deductible. In Texas this is a criminal offense for the contractor, and it exposes you to a denied claim.
- Assignment of benefits. You sign a form that hands your insurance claim to the contractor. They now negotiate with your insurer, and you have lost control of the scope and the money.
- Contingency agreements. You agree to use the contractor if the insurer approves the claim, before you have a written scope and price. You are now locked in with no bid.
- Large deposits. Materials are “ordered” and the contractor does not return.
- Unlicensed emergency repairs. Plumbing, electrical and HVAC work by people with no Texas license, no permit and no insurance. After the 2021 freeze this was everywhere.
- Inflated damage. A contractor finds damage your insurer does not, then pressures you to file.
How to protect yourself
- File your own claim. Call your insurer first, document everything with photos, and keep the adjuster’s contact.
- Do not sign at the door. Take the card. A legitimate company will still be there tomorrow.
- Verify before work starts. Plumbing, electrical and HVAC licenses at the Texas agency. For roofers, a certificate of insurance from the agent and a Houston address that predates the storm.
- Get the scope and price in writing before any agreement about who does the work.
- Pay as the work is done. Small deposit when materials arrive, balance on completion and inspection.
- Keep the permit in the contractor’s name. If the City of Houston requires a permit, the contractor pulls it.
The simplest test
Ask where the company’s office was a year ago. The answer tells you whether the warranty will exist a year from now.
Frequently asked
Is it illegal for a roofer to waive my deductible in Texas?
Yes. Texas law makes it a criminal offense for a contractor to waive, rebate or absorb an insurance deductible, and insurers can deny claims where it happened.
Should I sign an assignment of benefits?
Be very careful. An assignment of benefits hands control of your insurance claim to the contractor. Get the written scope and price first, and read anything you sign.