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.
Written and statute-checked by Dan Swenson, Minnesota attorney. Every legal claim cites the statute so you can verify it yourself.
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 advertising or promising to pay, directly or indirectly, all or part of your deductible as an inducement to sell insurance-funded work. The statute gives an insured or insurer a damages remedy for a violation. It does not say that every homeowner who hears the offer has committed insurance fraud.
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.