In the business of contracting, most owners will take the opportunity to get ahead. This means they will even sell promises that can end up problematic. With all the unpredictable events throughout the years, there are many people who have experienced having damage to their homes. If you have homeowner’s insurance, it could mean that you can get the cost of your roof covered at a lower cost. This is where some contractors, or roofing companies, have found their way in.
You may have heard such deals that can get your roof replaced at no cost. There are roofing contractors who tell homeowners that is it perfectly legal to cover their deductible cost on insurance repairs. Some roofing contractors even go to lengths to advertise their services as free. That offer may seem too good to be true, most of the time it is. It is illegal and here is the reason why.
Homeowners insurance is a legally binding contract between the homeowner, the contractor, and the insurance company. That contract outlines the responsibilities of each party should there be an unexpected incident. It further states the specific responsibility of the insurance company for limits, exclusion, and benefits, while the homeowner remains responsible for the deductible. The responsibilities of the homeowner remain the same as that of the insurance provider. This simply means that when homeowners do not pay the deductibles that is a form of fraud that could result in a loss of coverage.
How do roofing companies cover deductibles?
Roofing contractors that cover homeowners’ deductibles are not being clear to the insurance and mortgage companies. Roofing companies paying your deductible is illegal. You have to understand how the paying system works into the insurance claim you have on your roof. Here is a simplified example to explain how it is supposed to work.
- For an insurance claim to be paid, the documentation has to be in order and be provided on the total cost of the repairs.
- If the cost of the repairs, for example, is $20,000 and the deductible is $2,000.
- After a mandatory claims review, the insurance company will cover $18,000 – the total cost of repairs minus the deductible amount.
- The homeowner is responsible for the remaining amount for the full repair of the damages.
- The damages in the home are then addressed or repaired. The insurance company and the homeowner have their contractual obligations fulfilled according to the insurance policy of the homeowner.
Because insurance companies will take away the deductible from the claim payment, what roofing contractors do is to either inflate their estimates on the damage to be repaired or complete the job with less cost. This usually involves low-quality workmanship, low-cost labor, or cheap materials. If a contractor is misleading in the estimate to cover the cost of the deductible, this amounts to insurance fraud. In the same way, knowingly misrepresenting an estimate to allow an increase in payouts is also considered fraud. There are criminal penalties for these sorts of wrongdoing.
Looking for a better roof price does not exempt you from paying the deductible
Your deductible always comes first. If your damage repair job costs you $10,000 then your insurance company may only owe you $9,000. There is no getting away from deductibles, the only way a deductible is saved is when a false invoice is turned in, which would reflect a higher amount that would not be the amount that’s actually paid for. It is this kind of shady actions that contractors can be in big trouble.
The bottom line is roofing companies will not cover deductibles.
Reputation is important. Roofing companies will not risk being in financial and legal trouble by getting quick pay. Choose roofing companies that have a high customer satisfaction rating in the roofing repair industry. This is when you can really find out about companies that have the right value and do consider the quality of their work, and not by cheating the system or its customers. Reading through customer reviews also allow you to find out how different roofing companies actually manage their job orders. If you can get on their website or social media, you also may be able to see their output through the photos or videos. When it comes to covering a homeowners’ deductible choose roofing companies that do not compromise ethics. You will also be assured that you will not be compromised, and your roof will be fixed without a hitch.