If my insurance company deducts my deductible from a homeowners claim do I still pay the deductible ?

If your home in Hope Mills, NC is damage by a covered event, your home insurance is designed to help you make the required repairs. Your insurance deductible is the amount you pay out of your pocket for the repairs. You only need to pay this amount once per any event. The method for how it is paid depends on whether the company pays the contractor directly or reimburses you after the work is completed.

Direct Payment to a Contractor

In many cases, your insurance company will work directly with the contractor you have selected for the repairs. The first step is having the insurance company adjuster determine what the repairs should cost or what the company is willing to pay. You should get a few estimates from reliable contractors and the estimates need to be within the amount the insurance company is offering.

If the company decides that the repairs should cost $3,000, a payment would be made to the contractor for that amount minus your portion. For example, if your deductible is $500, the insurance company would pay $2,500. You would be responsible for paying the balance.

Homeowner Reimbursement

In the same situation, your insurance company might pay you directly. You would pay the contractor the $3,000 and receive a reimbursement from your insurance company for $2,500. However, if you have a mortgage on your home, the reimbursement check may be made out to both your and your mortgage company. Lenders often want to ensure the work actually was completed before the check will be signed over to you.

As your independent agent, we will work with the insurance company on your behalf. If you have any questions or concerns, please contact us. We can also help you compare home insurance costs online to ensure that you are getting the best rates.