Can a contractor cover, pay, offer discount, or waive my deductible in Arkansas?

Can a contractor cover, pay, offer a discount, or waive my deductible in Arkansas?

In Arkansas, contractors cannot legally cover, pay, offer a discount, or waive your deductible as part of an insurance claim, doing so may expose both the contractor to potential legal liability and the property owner as complicit in the fraud.

Why does this matter?

While there’s no specific state statute explicitly banning deductible waivers like some other states (e.g., Texas or Florida), Arkansas law broadly defines insurance fraud to include misrepresentations or false claims such as submitting incorrect invoices.

Insurance fraud is a Class D felony in Arkansas, punishable by up to six years in prison and/or fines up to $10,000 per violation.

How does it work in practice?

Waiving a deductible typically involves falsifying invoices or inflating costs in order to collect the Depreciation (the remaining amount from the claim)

What should I know?

If a contractor offers to cover your deductible, they probably really want your business, and let’s be honest nobody really likes to pay their deductible so it’s an easy sale. It’s better that you pay your deductible and ask your contractor for an upgrade on your new products, or see if they offer financing, those could be safe options.

Disclaimer. Non of this is legal advice, just generic information for educational purposes and to share, if you need legal advice contact your attorney.