Roberts Insurance Group Blog
Canton and the rest of Georgia have experienced several storms over the past few months. As a matter of fact, one just came through today. As a result, there are many homeowners here in Canton and throughout Georgia that have had to file claims with their home insurance company to get damage fixed. One of the questions that has been asked more than once is: when do I have to pay my deductible?
Before we answer that question, it is important to know that you absolutely have to pay your deductible. This may seem redundant or common sense to some, but many contractors will make it seem like you do not have to pay your deductible. They do this by committing insurance fraud- submitting higher-than-needed estimates and invoices directly to the insurance company. If a contractor tells you that you do not have to pay your deductible, just know that this business practice is illegal and the contractor will lose their license and face criminal charges and fines if they are caught. It also contributes to higher insurance rates for Georgia homeowners as a whole.
Back to the question at hand...
Typically, the contractor is responsible for collecting the deductible from you, the homeowner. When a claim is filed and it is determined that the loss will be covered, the insurance company will write a check for the amount to repair/replace the damage, minus your deductible, minus depreciation. These funds should be used as the down payment to the contractor to get work started. Once work is completed, the contractor will send proof of completion to your insurance company. At that point, the insurance company will release the depreciation funds that were deducted from the first check, leaving your deductible as the only amount owed to the contractor.
By this time, the contractor should have received all funds related to this project minus your deductible. This is usually when the deductible will be due and need to be paid. Every contractor runs their business differently, so you may be able to work out a payment plan or pay using a credit card. This is entirely up to the contractor and something you should discuss with them before you sign a contract.
Here at the Roberts Insurance Group, we work with homeowners to help them find the right policy and coverage that will work just the way they want when they need it! We are located in Canton, GA and have clients throughout the state.
Give us a call at 678-250-8133 or click below to get started and see how we can help you or your family!