Understanding your deductible is important!
What is a Deductible?
An insurance deductible may be defined as the amount you must pay up front before the carriers pay you for the loss covered. Most insurance policies contain clauses pertaining to deductibles.
Elevated Roofing requires the insured to pay their deductible. We will install the highest quality roof system available. We stand by our word to serve our clients with excellence, and our integrity is not something we will negotiate.
The deductible is the co-pay or responsibility of the insured. Many times the insurance company’s loss statement refers to less deductible applied. This portion or amount of deductible is the agreed upon amount between the insured and insurance company that the homeowner pays to the contractor.
The replacement of damaged property is a shared expense between the homeowner and insurance company. The insured’s annual premium is based upon the agreed upon out of pocket expense for the insured. Lower deductibles constitute higher annual premiums for the homeowner. Therefore, a lower annual premium would necessitate a higher deductible for each occurrence.
The responsibility to pay the deductible is the homeowner’s. The department of regulatory agencies states that it is illegal for the contractor to contribute to a homeowner’s deductible. However, many roofing companies contribute to the insured’s deductibles by using sign credits, discounts and rebates. DORA defines this participation in partial payments as soft insurance fraud, and in most cases it is overlooked.