No, roofing contractors cannot pay their customers’ deductibles. There has been a lot of confusion about this issue due to a number of unscrupulous contractors who mislead consumers, insisting that this is an approved practice. It is not. If you have any doubts, just review your insurance policy carefully.
Question About Your Roofing Contractor And Your Deductible
Explanation of Deductible
Your deductible depends on your policy and/or the type of loss. For example, you might have a deductible of $1,000 for theft and $2,000 for hail damage. The deductible is the amount that you are to pay out of your own pocket before the insurance company will pay for a loss. Thus, if you have a deductible of $2,000 and sustain $1,900 in damages, your insurance company will not pay anything and you must pay the entire $1,900 to repair your home. On the other hand, if it is going to cost $5,000 for repairs and you have a $2,000 deductible, the insurance company would pay $3,000.
Cheaper Prices Do Not Affect Your Deductible
Now suppose that the insurance adjuster determined that it would cost $6,000 to repair your home. You have a $1,000 deductible, so you might think that if you could find a contractor willing to do the work for $5,000, you will not have any out-of-pocket costs. This is incorrect. When the contractor submits his invoice for $5,000, the insurance company will take the deductible of $1,000 off that amount and pay only $4,000.
Contractors Submitting Inflated Invoices
In the above example, you might encounter a contractor who says that he will submit an invoice for $6,000 on a job he has quoted at $5,000. That way, he explains, he is covering your deductible. Your insurance company, however, views this as fraud.
What Your Insurance Contract Says
If you go along with a contractor to get out of paying your deductible, you could get yourself into some serious trouble. Here is the standard verbiage that is included in most homeowners’ policies.
• Policy is void if you misrepresent or conceal a material circumstance or fact, offer a false statement or commit a fraudulent act either before a loss or after.
• If your policy has been effective for at least 90 days, we will not cancel your coverage unless you submit a claim that is found to be fraudulent.
Hire an Honest Contractor
A roofing contractor who deceives you about how your deductible works may deceive you about other issues as well. For your own safety, always work with a reputable, honest contractor — such as Alpha Roofing. We have been in business for over 35 years and have built a reputation for honesty, quality, dependability and affordable rates. We install asphalt shingles, metal roofing systems, siding, gutters and more, and we also offer repairs. You can use our handy online form to request a free estimate, or you can call us at (512) 777-1086.