Do you have home repairs that warrant a home insurance claim? Individuals who need repairs often must pay a home insurance deductible.
This is a payment made to a repair provider or contractor before a home insurance policy kicks in to cover the rest of the cost. The owner must pay this amount out of pocket. For those who cannot make the payment, it may mean repairs cannot move forward. That is why choosing the right deductible matters so much.
Here's What Happens
A tree falls on your home. You file a claim with your home insurance provider. An estimate for the damage occurs. The local contractor says it will cost $2,500 in total for the repairs. The insurance company agrees. It determines you have a $500 deductible. It cuts a check to the contractor for $2,000. You must pay the contractor the other $500. These amounts vary from one insurer to the next.
If you do not have the $500 necessary, the contractor may not move forward with the repairs. You do not get access to the $2,000 in most cases. In fact, some insurance companies do not pay the claim amount until after you pay the deductible.
Can You Avoid Paying Your Deductible?
Only in limited situations are situations where you do not have to pay the deductible. However, this is rarely the case.
You may be able to work a payment plan out with the contractor. Your contractor may be willing to offer a discount to you that reduces the deductible cost. However, any honest contractor is going to be straightforward with the insurance company. They want the insurance company to come back to them frequently.
If you cannot pay, the project is unlikely to move forward. Most insurers will not cut a check until you pay the deductible costs out of pocket. This could mean you lose access to your claim. Do not avoid a claim because of a deductible concern.
Speak with your home insurance agency now. Before an accident or other damage occurs, be sure you have a deductible that is affordable to you. This is one way to ensure work can move forward.
Discuss deductible concerns with your agent. He or she may be able to help you reduce your costs. A lower deductible can raise your insurance premium, though. Finding the right balance here is very important to owners.
Do you need home insurance? Let us help. Call Knight-Dik Insurance Agency, Inc. at 800-286-6353 for a fast, free home insurance policy quote.