INSURANCE DEDUCTIBLE - "The Big Lie"
We have all heard it before, that a friend or family member had their deductible covered by their roofer, but somehow it didn't sound quite right...Well that's because it wasn't! In fact, the definition of the word tells us precisely:
Deductible: (In an insurance policy) A specified amount of money that the insured must pay before an insurance company will pay a claim.
What To Do Now
As a conscientious consumer you may find yourself asking, can't a contractor pay for my deductible out of his profit if he chooses too? Answer: Due to a two-check system, the insurance companies requires a final invoice from your contractor before the release of the second and final check. In order to not defraud the insurance company your contractor must truthfully state his contracted price with you. If he has chosen to subtract your deductible from the total price that amount will be held back and not paid by your insurance on the second check, leaving you to pay the deductible. The ONLY way to "cover a deductible" is for your contractor to lie on his final invoice. This practice is considered to be insurance fraud.
Common phrases said by contractor to "cover deductibles":
- We will put a sign in your yard and cover your deductible by calling it a marketing credit.
- We will write you a coupon.
- It's a grey area.
- There are loop holes.
- We will just not do the gutters, or other items, and we will simply trade that for your deductible.
This last line is particularly dangerous to you the homeowner. At the end of the project your insurance company will be calling you to ask if all the work is completed. If you have made an agreement with your roofer to make this "trade out" what are you going to tell your insurance company? Remember this is a recorded line and in your policy it will state that material misrepresentations will result in the cancelling of your policy.
The laws are very clear and we encourage you to read them here on our site so that you can keep yourself out of hot water..
***State Insurance Laws
BIDS/ESTIMATES: WHO'S REALLY SAVING THE MONEY?
MANY THINK THEY CAN POCKET A FEW BUCKS ON THIER INSURANCE CLAIM BY FINDING A LOWER PRICE...NOT TRUE!
Get Three Bids..... We have all heard this sage advice, but in reality this applies to a project that does not involve an insurance claim.
After your insurance company has approved your roof they will provide you with a scope of loss report that will itemize the type and quantity of each item that needs to be replaced by utilizing of a third party software program called Xactimate. Most reputable contractors also subscribe to this program as the two parties must have a standardized pricing model so as to not have disputes over pricing. Xactimate calculates the cost of materials, labor and profit for the contractor for each item that is being replaced on your home.
So ask yourself this.... if you are going to have to pay your deductible since IT'S THE LAW, and Xactimate knows the current market value for each item, do you really want to find a guy that going to do it for less? The answer is NO, you want your contractor to have all the money as needed to replace ALL of your damaged items with like kind, not with sub-par materials or labor.
Tell your contractor you want the job done right! If your contractor believes they did not pay enough ask them to supplement your insurance company for the additional funds needed. Do not allow your contractor to cut corners to save a few bucks!
HOW TO BEST CHOOSE A CONTRACTOR
Unfortunately, when it comes to choosing a contractor for your roof replacement it is "BUYER BEWARE". In some state such as Texas, roofing contractors are not required to be licensed which adds to the list of concerns faced by homeowners.
Most Common Issues:
- Contractors taking funds and not completing work
- Contractor not doing all of the work on the insurance report, while homeowners are unaware. This can lead to a homeowner unknowingly being left with material misrepresentations which could lead to the canceling of their policy
- Contractors twisting the facts about deductibles leading the homeowner down a path that can be construed by law enforcement as insurance fraud.
- Contractors filing inaccurate and fraudulent invoices to the homeowners insurance carrier
- Contractors not having proper liability insurance leaving the homeowner at risk if there is a worker injury on the job
- Contractors not living up to their workmanship warranty... leaving homeowners with costly water damage repairs
DON'T TAKE CHANCES with your most valuable asset...
Ridgecap Consulting has you covered!!
THE RIDGECAP ADVANTAGE
Our consultants ensure that that you receive full value, not the bare minimum often paid by insurance companies. Insurance companies routinely pay less than is required to repair and replace damaged items, leaving homeowners and their contractors taking shortcuts on the quality of both materials and craftsmanship. Ridgecap GC’s experienced staff knows how to negotiate with your insurance carrier and routinely increase the amount of the original claim by 50-100%.
In addition to maximizing your claim amount, our company takes pride in ethical business practices through honest invoicing to insurance carriers. By following all state insurance laws our customers can rest assured they will not be involved in insurance fraud or material misrepresentation.
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