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: Fri Mar 22, 2013 08:51 pm Post Subject:
OK, Lom, here's the math.
When the insurance company values the loss at $8500, that's the total basis of the claim. Minus the $1500 deductible, the total the insurance company will pay (absent any hidden damage found during repairs) is $7000 ($8500 minus $1500 equals $7000). The $4800 ACV payment reduces the $7000 total payment to a "balance due" of $2200.
Your contractor can submit a claim for $8500. The insurance company will write a check for $2200. That plus the $4800 check they first wrote PLUS the $1500 deductible equals $8500.
If the contractor agrees to take $7000 as the total amount due, fine. You essentially got a credit from the contractor for $1500. But in some circles, that would still amount to fraud because the contractor never intended to charge more than $7000 for the job. In which case the insurance company should only have written the second check for $700, not $2200. (An analog to this is found in some states' insurance laws that prohibit doctors from not charging HMO/PPO patients their office copay. It effectively is seen as overbilling on the part of the doctor -- if he wasn't going to accept the $20 copay, he should not have billed for the full amount of the visit.)
What you want is a contract that completely spells out the total price for the work to be done. You accept the insurance company money minus your deductible and pay the contractor what you and he agreed on. If the contractor later wants to rebate an amount equal to the deductible, well, only state contractor laws would prevent that.
Posted: Sun Apr 08, 2018 01:28 am Post Subject: deductible question
I received a check from my insurance company here in Florida and they deducted my $2500 deductible from the total and sent me a check from the balance. My contractor says that he paid my deductible and I owe him $2500 that he suppossibly paid. I never recieved paperwork, nor signed any agreement. Am I liable? I thought I paid my deductible when the insurance company deducted it from my check.
Posted: Fri Sep 14, 2018 06:00 am Post Subject:
You a roof replaced by storm damage.
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