by stevecox54 » Sat Nov 29, 2008 05:33 am
I have just filed my first claim on my house and have received a check for the actual cash value which includes the deduction of my deductible. I have an additional amount available to complete the repairs if necessary. My question is, if my deductible has already been deducted from replacement cost coverage amount, will I have to pay my deductible to my contractor or insurance in order to receive additional funds?
Posted: Wed Sep 22, 2010 11:25 pm Post Subject:
All the numbers didn't appear in my post for some reason. Here they are again and hopefully they'll show this time.
RCV: 8,500
less depr: (2,200)
less deduct: (1,500)
ACV: 4,800
Ins. pmt: 7,000
Roofer est: 7,000
Posted: Thu Sep 23, 2010 09:25 pm Post Subject:
Needs help too . . .
The insurance company states it will pay a total of $7,000 to repair your roof. If you can find a roofing contract who will accept that as payment in full, great!
He needs to submit a final invoice showing $8,500 for the complete job. Then the math is accurate.
If the roofer submits an invoice for $7,000, the math will be different: $7,000 - $1,500 = $5,500. If the insurance company's first check was for $4,800, the second check will be for $700 ($5,500 - $4,800). And to pay off the contractor, you need to come up with the $1,500 deductible.
Here's what won't happen.
Insurance company writes a check for $4,800 based on its adjuster's $8,500 estimate. Roofing contractor submits a final bill for $10,000. Insurance company writes a second check for $3,700. ($10,000 - $1,500 total).
They have set the value of the claim at $8,500. If you cannot find a contractor that can complete the repairs for $8,500, then you can argue for a higher claims payment or demand that the insurer provide a contractor who will perform the work to industry standards for $8,500. You can't just submit an inflated claim.
Posted: Thu Sep 23, 2010 11:16 pm Post Subject:
Thanks for the reply Max. First, I would run, not walk, away from any contractor that even remotely suggested your "here's what won't happen" scenario of padding the bill to effectively steal extra cash from the insurance co and involve me in some sort of insurance fraud scam. No way. I'm just trying to understand how this works and know exactly what it is or is not going to cost me out of pocket before I execute a contract with the roofer, and I guess my confusion is because the $1500 difference between 3 different very reputable roofer's estimates and the claim value. As I said above, all 3 gave me estimates of +-$7000, and they've been in biz locally 15 yrs, 28 yrs, and 35 yrs respectively, and one is actually the roofer that installed our existing roof 16 years ago. The point being, is that these are not fly by night storm chasing roofers, and I trust their estimates.
To clarify, the roofer I chose has been in biz for 35+ years locally, has an excellent reputation, and as I understand it, our contract will be to replace the roof for $7000 per his estimate.
So, are you saying what happens is once work is complete he charges me $7000, but provides a different "invoice" to insurance co for $8,500 that, in essence, covers my $1,500 deductible because that's what the insurance company has set the claim value at, $8,500? I'm okay with that if that's the way it's done and it's all above board. Just not clear why the adjuster, who is already in posession of the roofer's $7000 written estimate, would accept a different invoice from the roofer that "magically" increased by the amount of my deductible. Am I understanding this correctly or missing something here?
Posted: Fri Sep 24, 2010 01:19 am Post Subject:
So, are you saying what happens is once work is complete he charges me $7000, but provides a different "invoice" to insurance co for $8,500 that, in essence, covers my $1,500 deductible because that's what the insurance company has set the claim value at, $8,500?
Yes. What they've said is that even if you chose not to repair the roof, they'll write you a check for $4800. But after the repairs are complete, they'll complete their payment with an additional check for $2200. This demonstrates to the contractor that the money will be there.
The insurance company has set their settlement at a total of $7000 after calculating your deductible. So as long as the total invoice does not exceed that ($7000 + $1500), you're fine. Your contractor can include additional labor or miscellaneous supplies to account for the total invoice.
Posted: Wed Nov 17, 2010 10:31 pm Post Subject: Two ways of understanding deductile in the Philippines?
In regard to home insurance against fire, flooding, etc., a deductile in the Philippines is understood in two ways.
And I really don't know which one is the really correct way, but someone is making a kill using one way than the other to save money for the insurer.
Here, let me explain:
When your house is insured by the insurance company say for 3 million pesos (one US$ = roughly more or less 43 pesos today), like with each of my two homes, the adjusters employed by the insurer take out 2% from 3 million which is 60,000 pesos, and then when he has already computed how much the insurer will pay you -- which of course is less than 3 million, he will deduct 60,000 from that computed amount arrived at by him which is to be payable to you by the insurer.
Now, I got another adjuster to work on the payable amount by the insurer, this adjuster first computed how much the insurer has to pay me which of course is less than 3 million, then he deducted 2% of this amount from this same computed amount, which then will be the final payable amount by the insurer.
I am asking the people here who are into loss adjustments, do you have such a double dealing way in your practice here?
See my message in another board where I have a long thread on home insurance loss adjustment, but placed wrongly in the auto insurance board,
http://www.ampminsure.org/start/about14697-2.html.
Go to the last message from me there todate.
The way I see it, the adjusters employed by the insurer are into dubious procedures; but I cannot be sure as to the present time which one is really the correct way, or both ways are correct, which is altogether unacceptable to any reasonable person.
Gertes aka Ergyr
Posted: Sat Jan 15, 2011 04:16 pm Post Subject: tax deduction
Is the $1000.00 deductible that I had to pay to get my roof replaced due to hail damage deductible on my tax return?
Posted: Mon Jan 17, 2011 09:59 pm Post Subject:
Any part of a casualty claim not covered by insurance MAY be deductible on your federal income tax return, but there are rules that apply. Visit www.irs.gov for details.
Posted: Fri Dec 07, 2012 04:23 am Post Subject: Insurance deductible Question
I know this question has been asked, but I still don't understand. We have received one check from the insurance company for the RCV , but it is less the $500 deductible. Why would we still have to pay a roofer the replacement plus a $500 deductible? To me that would seem that we are paying it twice. We have the money from the insurance company, so wouldn't it be considered a cash transaction? Why would a deductible have to be paid to the roofer if it has already been paid to the insurance and the roofer is being paid by us and not by the insurance company. (As is what is usually done with auto repairs)
Posted: Fri Dec 07, 2012 05:28 am Post Subject:
I know this question has been asked, but I still don't understand. . . . Why would a deductible have to be paid to the roofer if it has already been paid to the insurance and the roofer is being paid by us and not by the insurance company.
Here's the flaw in your thinking:
When did you pay a $500 deductible to the insurance company?
YOU DID NOT. The deductible was DEDUCTED from the amount the insurance company paid you. That's according to the terms of your contract.
Whatever the amount you owe the contractor is what you owe the contractor. He has not been paid by the insurance company, so he gets paid by you. You can use the insurance company money or you can use your own money. If the insurance company money is not enough to pay for the work, then you use the insurance company money PLUS your money.
The check you received from the insurance company is probably for the Actual Cash Value, not the replacement cost. When your repairs are complete, if the cost exceeds the amount you received from the insurance company plus the deductible, then you file an additional claim for the balance (assuming your policy covers replacement cost -- as most do).
No one has been paid twice. And you didn't pay the deductible to the insurance company.
Posted: Fri Mar 22, 2013 07:54 pm Post Subject:
Sorry to rehash an old topic. Trying to understand what is legal and not...
In the example above, where the insurance values for $8,500 RCV, if the contractor bills me for $7,000 and bills the insurance company for $8,500, isn't that insurance fraud?
Isn't that the contractor paying for my deductible? which would be illegal?
I realize it would not be getting any more money from the insurance company than what they agreed to pay for, BUT doesn't the deductible mean that it comes out first?
So as given in the example, should $7,000 be billed to both home owner and insurance company, and since $4,800 was already given to homeowner, the insurance company would then pay out another $700, with the owner paying $1,500 for his/her deductible?
It doesn't seem fair (and different from auto where they give $x - deductible and you go buy whatever car you want), but isn't that the legal way to go?
Otherwise I just don't understand the difference between the method max suggested and what is usually referred to as the contractor paying for the owner's deductible...
Thank you -
- confused home owner...
Add your comment