Can a roofer cover your deductible? In a word “No.” There really should be no debate over this, yet there are far too many unethical contractors in this world who take part in this practice. Never will you find someone from your insurance carrier telling you this practice is acceptable. You will never find a deductible covering contractor disclosing the details on an invoice.Below are a few important facts to know before you do business with a company that offers to cover part or all of your deductible. We will reproduce a few important sections of the law and standard insurance contracts for you to read over and digest. Please note, we offer no legal opinion or advice.
What Does An Insurance Contract Say About Deductibles?
There is a good deal of fine print in an insurance contract, but the basics are not hard to understand. You pay a monthly premium for coverage in exchange for protection against a big loss. Your insurance is not there for every small loss, so there is a deductible amount that must be exceeded before the insurance kicks in. This deductible always comes first.If your deductible is $1,500.00 and you have a loss that is less than $1,500.00 your insurance owes you nothing. You would cover the first $1,500.00 of any loss. The same is true even if your home is pelted by large hail and the total loss is much greater. If you have a $12,000.00 loss, your insurance company would owe you $10,500.00 as the deductible amount. $1,500.00 would be paid by you. In fact, for any loss above $1,500.00, your part would always be the same, your deductible.
Shopping For A Better Roof Price Does Not Save A Deductible
Continuing with the above example, what if a roofer can do the job for $10,500.00 that your adjuster said would be around $12,000.00? Did you just find a way to save your deductible? No. Your deductible comes first. If your job cost you $10,500.00 then your insurance company would only owe you $9,000.00 – there is no financial reward for finding a lower price. The only way a deductible is saved is by turning in a false invoice that reflects the higher dollar amount, not what you actually paid. It is this false invoice where a bad contractor can get you in big trouble. Approximately one in three claims are internally audited by insurance companies. If a roofing contractor gains a reputation for this practice, all their invoices are highly scrutinized.
Insurance Contract Language: Section I & Section II, Conditions:
Below is some of the actual language in a standard insurance contract. There are variations of this in every homeowner’s policy.
Concealment or Fraud
- This policy is void as to you and any other insured, if you or any other insured under this policy has intentionally concealed or misrepresented any material fact or circumstance, made false statements, or committed fraud related to this insurance, whether before or after a loss.
- (2) if this policy has been in effect 90 days or more, we may not cancel this policy unless:(c) you submit a fraudulent claim.