What is an Insurance Deductible?
Most insurance policies including property insurance, health insurance, auto insurance, property insurance, small business insurance and home insurance contain clauses pertaining to deductibles. An insurance deductible may be defined as the amount you must pay upfront before the carriers pay you for the loss covered.
Property Insurance Deductibles
The next question many wonder is, “What is an insurance deductible as it relates to property insurance?” Residential Property insurance commonly has a straight line insurance deductible of a set amount or percentage of the value of insured property. The straight insurance deductible applies to every separate loss, and thus the type used in all matters of personal insurance. To illustrate, assuming during the same year, you met with two or three different hail storms, then the deductible will apply separately for each of the storms.
The deductible is the co-pay or responsibility of the insured. Many times the insurance companies loss statement refers to less deductible applied. This application of the deductible doesn’t mysteriously appear from the insurance company. This would be completely against the definition of what a deductible is.
The deductible is the portion deducted from the insurance companies’ proceeds to restore the property to pre-storm condition. This portion or amount of deductible is the agreed upon amount between the insured and insurance company that the homeowner pays to the contractor.
The replacement of damaged property is a shared expense between the homeowner and insurance company. The insured’s annual premium is based upon the agreed upon out of pocket expense for the insured. The lower deductible constitutes a higher annual premium for the homeowner. The reciprocal is in effect which would mean that a lower annual premium would necessitate a higher deductible for each occurrence.
The responsibility to pay the deductible is the homeowner’s. The department of regulatory agencies state that it illegal the contractor to contribute to a homeowner’s deductible. However, most roofing companies contribute to the insured’s deductibles by shady sign credits, discounts and rebates. DORA defines this participation in partial payments as soft insurance fraud. Almost all cases of soft fraud are overlooked.
My question to you is does this oversight or looking the other way give a man or woman of integrity carte blanche to do as they please?
At Integrity Roofing and Painting, the insured must pay their deductible. We will install the highest quality roof system on their property. It is our intent to be up front and truthful with every person that we meet with. We will be apologetically ethical and uncompromising in our integrity with the insurance company and client. If I am willing to lie with the insurance company would I not lie to you? We would rather not go there so we don’t. Integrity will do what we say we will do. There will be no double speak , double talk or hidden agendas. We will exercise family values in our business transactions.