Why 'we'll eat your deductible' is illegal in Minnesota
Minn. Stat. § 325E.66 makes it unlawful for a contractor to pay, waive, or rebate your insurance deductible.
Minn. Stat. § 325E.66
The rule
It is illegal for a contractor to pay or waive your deductible in Minnesota.
Minnesota Statutes section 325E.66 prohibits a residential contractor from promising to pay, waiving, rebating, or absorbing any part of your insurance deductible on an insurance-funded repair. Any agreement to do it is void. "Free roof, we'll eat your deductible" is not a discount. It is a violation of state law, and the money usually reappears as an inflated claim or cut corners, which is insurance fraud a homeowner can get pulled into.
Why the offer is a red flag
The same statute requires the contractor's written estimate on an insurance-funded job to include a notice stating the contractor may not do this. An estimate missing that required notice is itself a red flag about who you are dealing with.
What honest contractors do instead
Minnesota law also bars contractors from negotiating your insurance claim on your behalf. A roofer can meet the adjuster at your house, point out damage, and provide a detailed scope and price. But representing you in claim negotiations is reserved for you, a licensed public adjuster, or an attorney. A contractor who wants to "handle the whole claim" is offering something the law does not let them sell.