by karin » Tue Dec 07, 2010 01:24 pm
Had water damage from a pipe. Called in water damage specialists to dry out the place. The insurance company estimated it would cost about 3500 to restore my house, but took out our 1000 deductible. The restoration company said they are entitled to work directly from the estimate, and that we must also pay them 1000 deductible so they can get the entire 3500. Is this true?
Posted: Tue Dec 07, 2010 05:14 pm Post Subject:
Well, what exactly is your understanding of "deductible."
Although some folks misunderstand, the deductible is the amount of every claim that you have agreed to pay with your own funds. If a claim is $3500, and your deductible is $1000, then the insurance company will pay $2500 and added to your $1000, the total paid to the contractor is $3500.
The answer to your question is "Yes, this is true."
Posted: Wed Dec 08, 2010 04:33 am Post Subject:
I guess an insurer meets your claim only after you meet the deductible. So in this case the amount of $2,500 will be met once you agree to pay the $1,000 worth of deductible.
Posted: Wed Dec 08, 2010 11:30 am Post Subject:
I guess an insurer meets your claim only after you meet the deductible. So in this case the amount of $2,500 will be met once you agree to pay the $1,000 worth of deductible.
WRONG! The insurer pays the claim in spite of the deductible. The deductible is the part of the claim YOU AGREED TO PAY when you obtained the coverage. If the deductible is larger than the loss, there is nothing for the insurer to pay. If the loss is larger than the deductible, then the amount the insurer pays is the amount in excess of the deductible. If the amount the insurer pays is not sufficient to cover the loss, whether there is a deductible or not, YOU ARE RESPONSIBLE FOR THE DIFFERENCE.
Plain and simple.
You are looking at this as if the insurance company has committed some kind of wrongdoing. They have not.
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