Do I really have to pay my insurance deductible

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insurance deductibleWe get it, at some point, someone has told you that some contractors will eat the deductible so that you don’t have to pay anything out of pocket. But here’s the problem with that, in almost every situation it is wrong. It is almost always morally, ethically, and sometimes even legally wrong. And in some cases, it is insurance fraud.  First, let’s cover the basics.

What is a deductible?

A deductible is an amount you contracted with your insurance company to pay in the event you claimed a covered loss on your insurance policy. This usually creates a contractual requirement for a homeowner to pay the deductible. When the insurance company writes your estimate, they specifically account for your deductible in the estimate. If the deductible doesn’t get paid, the money has to come from somewhere. Which usually means your project isn’t given the time, attention, or materials your insurance company paid for.

Whether it is legal or not will depend on the state the property is located, the contract you have, your insurance, and who is actually paying your deductible or how it’s getting covered. Sometimes, your salesperson eats the deductible at the end. Which, while it may not rise to fraud as defined by your state statutes, it isn’t exactly ethical either.

So, who does this type of thing? Usually roofing companies, contractors, and salespeople you do not want to contract with. Here is my answer when someone asks me about deductibles, “If your salesperson or company is willing to cut that corner, what other corners are they willing to cut?”  Insurance company rates for repair work or storm damage work is very low to begin with. If a company is also eating the deductible that is coming at a cost to you, you just don’t realize what it is.

Maybe they’re cutting safety precautions, maybe they don’t have adequate insurance, maybe they’re rushing and not taking the time to do your work to the standard it should be done, or maybe they’re usually substandard crews or materials.  Now, don’t get me wrong, like most rules there are exceptions and I’m sure at some time or another there has been a situation where a contractor legally and ethically somehow covered a deductible.

For instance, a lot of roofing companies (including ours) give referral bonuses to clients. So even though a customer pays a deductible they can earn it back (and more!) by referring friends, family, and neighbors. Odds are good that if you have an insurance claim, for a roof, gutters, or siding as a result of a storm, many of your neighbors probably do too. This is a perfectly ethical and legal way to earn back your deposit!  

We here at Patriot pride ourselves in working with every customer to get them a high-quality roof at a price they can afford without having to cut corners. As a general rule, companies that rely on doing work without a deductible from the homeowner are not the companies we’d want doing work on our houses. If you have any questions or would like to request a Free No-Obligation Estimate visit our website at or call us today!

We are headquartered in Wilmington but we service from Raleigh to Myrtle Beach!

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