You’ve heard about your insurance deductible, you’ve worried about your deductible, you’ve feared your deductible, but have you ever understood exactly what your deductible is?
Your insurance deductible is the amount of money that you are responsible for when you place an insurance claim. The amount of your deductible varies greatly depending on your insurance policy. We’ve seen customers with deductibles as low and $250, or as high as $15,000. (Wouldn’t that be a great bit of information to know before you had to deal with a water damage claim?…)
When dealing with water damage the insurance company typically pays the contractor directly for the water mitigation portion. Then they hold the deductible out of the repair check they pay to you the customer. Brace yourself for math…
For example: The insurance adjuster writes a repair estimate for $15,000. Your deductible is $1,000. The adjuster would then release a check to you for $14,000. Total repairs ($15,000) minus deductible ($1,000) equals your repair payment ($14,000).
Once repairs are complete it is up to you to pay your contractor for the withheld amount. It is also common to work out a deal with your contractor in order to save you from having to pay back your deductible. NOTE: You often have to give something up in order to make this happen. (Replace your carpet with a cheaper material, do the painting yourself, or decided to not replace certain items, ect…)
As I mentioned before, if you don’t know what your deductible is look through your policy or reach out to your insurance agent. Don’t be the guy or gal that learns you have a $5000 limit (see link) with a $2500 deductible when your finished basement is flooded with a foot of water. (You laugh now but we’ve seen it a hundred times.)
NEED HELP WITH WATER DAMAGE? CALL (317) 315-5071