What is an Insurance Deductible?
Simply put, an insurance deductible is the amount you must pay out of pocket in addition to what the insurance company is paying.
Health insurance deductibles have to be met before the insurance providers will pay your medical bills. If you have ever been to a doctor, you have experienced this. Property insurance claims work similarly.
What is an insurance deductible as it relates to property insurance claims?
The adjuster will then deduct the amount of the preset deductible from the first payment they send you.
The adjuster will also deduct the depreciated amount of the roof (and other damaged property) from the first payment. This is considered the net claim. There is generally a second payment issued after the work is completed to recover the depreciation that was withheld. It is important to note that while the depreciation is recoverable in the form of a second insurance payment, the deductible is not. It is always the responsibility of the insured to pay this amount.
How much is a deductible?
Increasingly we are seeing deductibles that are based on a percentage of the value of the home. In areas around the coast, this is standard, but it is becoming more common in Colorado as well. Instead of a set rate of $1000, you can select a 1% or 2% deductible. For example, if your home is insured at $300,000, a 1% deductible would be $3,000 and a 2% deductible would be $6,000.
You have to weigh the savings on premiums against the possibility of filing a claim and incurring the deductible to see which is a better option for you. Your insurance agent can help you work through the specific options for your policy. Only you can determine what the right deductible is for you based on the value of your home and budget.
Who pays?
The deductible is the co-pay, or responsibility of the insured. Many times the insurance company’s claim summary indicates “less deductible applied.” This does not mean that the deductible is reapplied (or added back in) in another part of the claim. It is deducted from the insurance company’s payments, thus the term deductible.
The replacement and repair of damaged property is a shared expense between the homeowner and insurance company.
Any way you look at it, the responsibility to pay the deductible is the homeowner’s. Colorado Legislature clearly, and in great detail, states that it is illegal for a roofing contractor to contribute to a homeowner’s deductible. (SENATE BILL 38) However, some roofing companies continue to illegally contribute to their unsuspecting clients’ deductibles with sign credits, discounts and rebates, all of which are specified as illegal and punishable by law. Integrity Roofing and Painting does not participate in this illegal practice.
Our position
Integrity Roofing and Painting
115 North Union Boulevard, Colorado Springs
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I am very happy with the service I received. From beginning to end Ben has been a dream to work with, Ben made sure that I was keep in the loop on when supplies where going to be delivered and when my roof was going to be replaced. They … More even sent Jose in to fix some drywall that was damaged (not caused by integrity). Ben, John and Nathanial were very professional all the way through the job and each and everyone of them showed compassion and understanding my moods and never once were they rude. I will recommend Integrity Roofing to anyone I know that needs a roof done. Well done guys and thank you all
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We were selling our home and found that the roof had significant hail damage during the inspection. I called Integrity Roofing and they were able to complete the job for us quickly and help us walk through the insurance claim to make the … More process as painless as possible. Anthony was great, as well as the whole team. I would recommend using them!
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I'd like to take a moment to share my experience with Integrity Roofing and Painting. Specifically, I'd like to mention my representative, Jordan Jeffords. Unlike other roofing companies that provided me with estimates, Jordan … More actually took the time to listen to my concerns and understand my unique situation. I say unique because with an aggressive closing timeline for the sale of my home, I discovered that my roof needed to be replaced as a result of my builder installing faulty shingles. It was literally the worst case scenario!
Instead of taking advantage of my vulnerability and pushing a hard sale to put money in his pocket, Jordan demonstrated empathy. Yes, I said empathy. He assured me that he'd do everything possible to provide me with accurate quotes; even connecting me with outside vendors in the local solar industry to provide savings on the removal and reinstall of my panels. Trust me, having someone to point you in the right direction when it comes to solar panels and replacing your roof is important. It can be VERY expensive! Knowing my situation and the need to receive a timely and competitive quote - Jordan delivered. No strings attached.
If the scenario weren't predicated on the quick sale of my home via a pricing concession, I would have given Jordan and Integrity my business. Although other companies provided lower quotes, I firmly believe that working with a vendor that takes a genuine interest in supporting their customer is priceless. In the event that you need to repair or replace your roof - call Integrity Roofing and Painting. Be sure to specifically as for Jordan because he's an outstanding young man that cares for his customers.
