Homeowner's insurance deductible

[Macgyver55]

I'm not criticizing contractors in general or you. Not to say I'm unhappy with the contractor I used, but I wish I would have known you a few years ago when I had my roof done. You seem like a stand up guy.

It just seems in this case that you want it both ways, but you feel a homeowner shouldn't have that ability.

Quote:

Two jobs ago, we were two square short on a bid. We went and bought the extra two square and installed them. The bid price did not change.

As it should be since it was your error. However, if you had that problem with me and showed me that a simple math error was made and I actually had to have more material I wouldn't be opposed to paying for the extra I needed. I don't expect you to pay for something I get.

I recently had a floor installed. They came out and measured, and bid me a price. I measured and came up with 2 cartons less materials needed than they did, which I told them. Mind you I'm just a novice at flooring but they said it was necessary. When the job was all said and done, there were over two full cartons more than what they had bid. Each carton of tiles covered 21 sq.ft. so I was paying a labor charge that included 42 extra square ft. of labor for material that was not needed. I don't mind paying full labor for the waste on the partial box, but why the unopened ones? I understand having extra for mistakes and defects etc, but should I have to pay for waste over and above what there actually was?

[Surface Tension]

We're getting off topic here. So far off topic that this could be a new topic.

Roofer, I'm not sure were your getting your information from but it is perfectly legal for the homeowner to do the repairs as long as they are up to code. This is the USA and we don't want insurance companies telling us we have to us a contractor to perform repairs on our homes. Homeowners can legally perform any aspect of home repair, construction, or remodel whether it be electrical, roofing, plumbing, or framing. You can have your buddy help you too with the exception of Electrical, Plumbing, and Septic Systems but legally the home owner can do all those himself. If you want your pals to come over and do the roof, thats perfectly legal, even if you have filed an insurance claim, still legal.

Quality of work is another matter and since this forum is based on DIY lets try and help in that direction with how-tos.

If you can find a contractor to do the job for less

then what the insurance paid out its money in your pocket. Right or wrong is another matter. I've said it before, insurance settlements usually fall well into the favor of the home owner.

If you think this is going to bankrupt insurance companies or its a misuse, at least its an act of God that is getting insured.

Lets look at human error and boating. Hit a rock with that new outboard and we're talking 5 grand. Back down the ramp with the boat safety chain off, boat lands on the pavement and guys run to the insurance company.

I've personally never filed a claim for wind or hail damage but have been contracted to do the job many times. In all instances the insurance check wasn't made out to the company although it could be setup that way. Those that I personally know that have claimed damage had the check made out to them, some did the work themselves, some used a contractor. There was no follow by the insurance company.

Not that I don't think it wouldn't be a good idea though.

Then you get into the lender who actually owns the home or its financial interest anyway. The work must be performed or any further claims that are a result from work not performed can't be made. So if you re-roof you better save receipts and take pictures.

As far as deductibles. The lower the deductible the less your premiums are.

[Sandmannd]

Back down the ramp with the boat safety chain off, boat lands on the pavement and guys run to the insurance company.

Hey!!! Quit talking about me ST!!!!

[DRH1175]

so with all this said. do you have the roofer handle the claim with the company. Or do you do it yourself and than find the best product and price.

[Roofer]

The lower the deductible the higher the premiums are.

Yes it is legal doing a job yourself, for now. No, it's not legal to pay your friends to help you, unless they have a liabilty insurance policy. If they help you for free, then they are covered (barely) on your homeowners policy. Like I said, if your friend or someone you hire breaks his neck, make sure you are covered on your end.

As for who to handle the claim.........It depends on who you trust. Lately I have found that maybe 1 out of 5 (20%) of adjusters estimates are correct. The other 80% of the time they miss quite a bit.

First have the adjuster out and get his paperwork. Then hire a contractor and go over the paperwork with him or her. Too many people are scared to show their claim because they always want to get a cheap bid to pocket money. Not all the time, but sometimes you are putting the screws to yourself.

Most contractors now, walk away if they are not shown what is to be replaced. If not, they are there for a quick buck.

[Roofer]

BTW, when I say things are legal or not legal, doesn't mean that it is strictly enforced.

Sorry to get off topic so much, but as you can see this is important to me....important enough to try and get a news story out of it.

[Surface Tension]

Sandmann, fuss up, it was Kingfisher the un-did your safety line wasn't it.

Roofer, you need an invite to a roofing party.

[croixflats]

deductible is 1% of what the home is worth.....$200,000 is 2,000 deductible.

Shingles just went from $54 a square to almost $70. We can't shop around too much for prices. These shingle companies are obviously some of the ones taking advantage, but with oil to make them, I can understand.

Thanyou Roofer explains alot 1% can get expensive. I think I'll move into a tent.

[dougger222]

I am seeing more and more home owners who have a 1% deductible. It would not be safe to say an expensive house is going to have a higher deductible than a cheaper house. Have seen $500 deductibles on $150K houses as often as $750K houses. A friend of mine has a $250 deductible and has had four claims in the past seven years and his insurance company has never once raised his deductible. He had hail seven years ago and lightening twice in 06 and hail. He got large hail damage on his house roof and pole building and was given a check for $17K. With no loan on the house the money was free to do with it as he pleased. Up until seven years ago he was claim free on his house for 25 years.

Insurance companies don't frown down on home owners pocketing money as much as they frown down on home owners falsifying claims or tying to pass mechanical damages as weather related damages. Another thing insurance companies don't like is when you file a claim for damages that have already been paid for. The double dipping is an insurance no-no. If the insurance company approved for a replacement the work should be repaired by a licensed contractor but it doesn't have to be.

It is sad to say I have seen home owners do better work than some contractors.

Last Summer after making four trips to a home owners house who was my neighbor for a few years finally got his roof approved for a full replacement. The adjuster said $9,200 and after seeing my estimate they made payment of $12,400. The job was to do the house roof, flat roof, re-deck, and roof the garage. The home owner decided to have another company do the work who charged half what I got him and they didn't do the flat roof, re-decking, and didn't do the garage roof. The rest of the money went into the home owners pocket. Four trips to his house and another hour or two doing paperwork on the file and what did I get? NOTHING

It would be safe to say on average my bids are $1-3K more than most adjusters. The home owners get a free upgrade but have to pay for deductibles. Right now my work load is looking like it will be hot and heavy until the snow flies by the way things are going. Just like it was in 06 and 07 due to wind and hail storms.

Each year only a couple home owners pull the cheap route but no sleep is lost over it anymore. It's a decision they make and only they are responsible for that decision.

Roofer is right on his post which made mention to estimates that come in lower that the adjusters estimates should be sent to the insurance company for less payment.

If the insurance companies payed less in claims for "cheap" contractors they would either have more profit or would be able to reduce premiums. Usually "cheap" contractors are going to be just that, cheap. They will use less than top quality materials and they will use less than top quality labor.

Not sure how many of you know how insurance works but a friend of mine explained it like this once.

When you pay your premium for say home or auto 85% of the premiums go into a pool to cover claims, with interest. The 15% is profit used to go towards paying the agents and such. When you change insurance companies they deduct any claims paid from the 85% you paid in and give that money to the new insurance company to cover you. Of course some home owners may have large claims or frequent claims which will exceed the 85%. At that point the insurance company can drop you or raise your rates accordingly.

Adjusters tell me filing claims related to weather is ok but if you file claims for things like a biting dog, driving into the garage door with it closed, etc they really go against you.

I have had a few different insurance companies and a couple years ago one sent me a letter stating something like this,

"due to all the hail and wind claims deductibles for those perils are to be set at $1,000. Any other claim is $500." Since then both insurance companies have had a $1,000 deductible for wind and hail.

Been to a few homes were the home owners have a $5,000 deductible and even heard one home owner say the deductible was $10,000, OUCH!!! To be smart you would have to have $5-10K saved up just for the deductible.

I have worked hundreds of insurance claims and I am still learning.

Right now I would like to say to any home owner with storm damage,

DON'T SIGN WITH SOMEONE WHO COMES TO YOUR DOOR!!! Do your homework and hand pick the contractor(s) you want to do the repair work. One good place to find a contractor would be by asking your insurance agent. If they don't know a good one more than likely they know another agent who does.

I have four agents who recommend me weekly. The clients never ask for money back and never seem to complain paying the deductible in full. They know to trust the agent.

[dougger222]

BTW,

Roofer and I meet eye to eye on most things roofing related. We frequent the same roofing forums and have a lot of respect for each other.

You could say we are both a dying breed. Minnesota born and raised roofers who have only friends and family as workers. Both of our fathers work with us on a daily basis.

We are both very passionate about what we do and it shows in the work we do. Our repeat customers keep us going and it's happy customers that make future customers.

There are a lot of good local roofers out there who could benifit from this storm damage.

[Sandmannd]

Sandmann, fuss up, it was Kingfisher the un-did your safety line wasn't it.

The world may never know Frank

[croixflats]

It is nice to hear from Dougger222 and Roofer. Two contractors who take pride in what they do. Lots of contractors wont take the time to share like these two do. That says to me they are respectable, verry knowlageable and they care and understand the predictament people can get into.

I'm a self employed contracter, just in a differant line of buisness, and I too go out of my way to inform and pass on my knowlage to others not expecting anything in return. Oh, I'm not trying to toot my own horn just trying to say how much I appreciate what these two do and others here on the good ol'e FM

[Roofer]

Wow!! Thank You.