The "Deductible Eating" Trap
Perhaps the most prevalent form of insurance fraud in Kansas City involves the contractor offering to "absorb," "waive," or "cover" the homeowner's insurance deductible. In Missouri, this practice was specifically targeted by Senate Bill 101 (Section 407.725, RSMo). The law states that a residential contractor cannot advertise or promise to pay or rebate all or part of any applicable insurance deductible.
When a contractor in Overland Park or Blue Springs tells you they can "cover your $3,000 deductible" on a new GAF or Owens Corning system, they are essentially committing to providing a false invoice to your insurance carrier. To get paid, they must submit a final invoice showing the full amount was chargedâincluding your deductible. If they didn't actually collect that money from you, they have submitted a fraudulent document to a financial institution.
The Missouri SB 101 Mandate
Under Missouri law, if a homeowner cancels a contract because the insurance company denied the claim, the contractor must return any deposit within 10 days. More importantly, the law explicitly prohibits contractors from offering "inducements" (like paying your deductible) to get you to sign a contract based on insurance proceeds.
Invoice Inflation and Material Switching
Fraud isn't always about the deductible. In high-value neighborhoods like Mission Hills or Brookside, where homes often feature premium materials like Ludowici tile or DaVinci Roofscapes, a common fraud involves "Supplement Scams."
- The Supplement Ghost: The contractor tells the insurance company (such as State Farm or Farmers, both of which have massive KC presences) that they needed to add high-end ice and water shields or specific flashing kits that were never actually installed.
- The Material Swap: They bill for a Class 4 Impact Resistant shingleâwhich earns you a premium discountâbut install a standard architectural shingle purchased from local suppliers like ABC Supply Co. or Beacon Building Products.
Local Economic Impact
The average roof replacement in the Kansas City metro ranges from $12,000 to $18,000 for standard asphalt. When fraud enters the equation, it drives up premiums for everyone in the 816 and 913 area codes.
If an insurer discovers the deductible was waived, they may demand a refund of the entire claim payout or cancel your policy for material misrepresentation.
In both Kansas and Missouri, insurance fraud can be prosecuted as a felony depending on the dollar amount, involving both the contractor and the policyholder.
Signs of an Ethical KC Estimate
A legitimate Kansas City roofer will provide a clear breakdown of the Scope of Work that aligns with your insurance adjuster's summary. They will never ask you to sign a contract with "blank" spaces and will always insist on a check for the deductible amount, often providing a receipt specifically for that portion of the payment.
When reviewing quotes in Northland or Liberty, verify that the local municipal codes (like the 2018 or 2021 IRC) are being followed. Fraudulent contractors often skip "code upgrades" while still billing the insurance company for them.