We have all heard it before, that a friend or family member had their deductible covered by their roofer, but somehow it didn't sound quite right...Well that's because it wasn't! In fact, the definition of the word tells us precisely:
Deductible: (In an insurance policy) A specified amount of money that the insured must pay before an insurance company will pay a claim.
As a conscientious consumer you may find yourself asking, can't a contractor pay for my deductible out of his profit if he chooses too? Answer: Due to a two-check system, the insurance companies requires a final invoice from your contractor before the release of the second and final check. In order to not defraud the insurance company your contractor must truthfully state his contracted price with you. If he has chosen to subtract your deductible from the total price that amount will be held back and not paid by your insurance on the second check, leaving you to pay the deductible. The ONLY way to "cover a deductible" is for your contractor to lie on his final invoice. This practice is considered to be insurance fraud.
Common phrases said by contractor to "cover deductibles":
Get Three Bids..... We have all heard this sage advice, but in reality this applies to a project that does not involve an insurance claim.
After your insurance company has approved your roof they will provide you with a scope of loss report that will itemize the type and quantity of each item that needs to be replaced by utilizing of a third party software program called Xactimate. Most reputable contractors also subscribe to this program as the two parties must have a standardized pricing model so as to not have disputes over pricing. Xactimate calculates the cost of materials, labor and profit for the contractor for each item that is being replaced on your home.
So ask yourself this.... if you are going to have to pay your deductible since IT'S THE LAW, and Xactimate knows the current market value for each item, do you really want to find a guy that going to do it for less? The answer is NO, you want your contractor to have all the money as needed to replace ALL of your damaged items with like kind, not with sub-par materials or labor.
Tell your contractor you want the job done right! If your contractor believes they did not pay enough ask them to supplement your insurance company for the additional funds needed. Do not allow your contractor to cut corners to save a few bucks!
Unfortunately, when it comes to choosing a contractor for your roof replacement it is "BUYER BEWARE". In some state such as Texas, roofing contractors are not required to be licensed which adds to the list of concerns faced by homeowners.
GET YOUR PAYMENTS AS LOW AS $40 PER MONTH WITHOUT BREAKING ANY LAWS!
While it is clearly the law that you must pay your deductible it can nonetheless be taxing on one's pocketbook. Ridgecap Consulting can help you with this LEGALLY by offering in home financing.
*Ask about six and twelve months same as cash!