Deductible Question

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PostPosted: Sat Nov 29, 2008 5:33 am   Post subject: Deductible Question  

I have just filed my first claim on my house and have received a check for the actual cash value which includes the deduction of my deductible. I have an additional amount available to complete the repairs if necessary. My question is, if my deductible has already been deducted from replacement cost coverage amount, will I have to pay my deductible to my contractor or insurance in order to receive additional funds?

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PostPosted: Sat Nov 29, 2008 2:09 pm   Post subject:   

Not sure I follow. What I think you are saying is that you received a check for ACV on the loss and the deductible was taken. Once you have the repairs made, the insurance company will issue another payment for RCV. Will that RCV check then include your deductible amount as a payment? No. Even a RCV policy still has a deducible taken. The payment is based on what it would cost to build new but the deductible is still removed.

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PostPosted: Sat Nov 29, 2008 2:22 pm   Post subject:   

not sure i follow 100% either...i'll add..you only pay one deductible per loss...so the one deducted from this payment, has been made for this loss..when they issue the balance your deductible will not be taken again...



and yes you have to pay your deductible, they won't be giving that back to you in the next/final payment



hope we answered your question if not please re-phrase it and we'll try again



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PostPosted: Sat Nov 29, 2008 7:37 pm   Post subject:   

Thank you both for your responses, you both understood my question correctly as cryptic as it was. I just wanted to make sure that I was not responsible for a payment of my $1000.00 deductible to anyone because it was taken from the RCV upfront and that is all.

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PostPosted: Sun Nov 30, 2008 7:09 pm   Post subject:   

good steve, glad we figured it out...now if the 'bill' for the repairs incuded your deductible then you will owe that to the contractor of course.



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PostPosted: Thu Dec 11, 2008 5:02 am   Post subject: Here is the real answer.  

Let's say you have a roof replaced from storm damage.



The rcv value of the roof is $10,000.



The deductible is $2,000



The RECOVERABLE depreciation is $2,000.



You will receiver a check from your insurance company for $6,000 dollars.



Let's say you find a roofing contractor to install your roof for $8,000 dollars.



You will not receive any of your recoverable depreciation. However, If you find a roofing contractor that does the job for exactly $10,000 or more then after the job is done send in the invoice to the insurance company and you will receive all of your $2,000 in depreciation.



I once was in the roofing business and this frustrated me to no end, most people can not comprehend what I just said.





If you need more of an explanation just email me.

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PostPosted: Thu Dec 11, 2008 10:22 am   Post subject:   

Quote:
most people can not comprehend what I just said.




Quote:
If you need more of an explanation just email me.
Nope I'm good, I get it, makes a person realize why people pad bills some times don't it? but the fact is a 2k deductible is owed. so if you are only out 2k for your deductible then you have in effect recovered that depreciation by getting a roofer to do it for 8k


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PostPosted: Thu Dec 11, 2008 2:18 pm   Post subject: Deductible  

Yes people should pay their deductible. What is the purpose of deductibles if you don't have to pay them?



Try selling roofs and explaining to people that they must pay their deductible, most people want to find a way out of paying their deductible.



In the auto dent repair business from hail storms etc, many of those companies don't make people pay their deductibles.



I wish there was an insurance fraud unit catching all these people that don't pay their deductible. It would be very very very easy to do all you would have to do is pretend to be a customer of one of these companies and then you would know if they are helping people with their deductibles or not.



My belief is that insurance companies are over paying claims if someone is able to not pay their deductible.



Lets say you have a $1,000 deductible but your roofing company gives you a $1,000 rebate. To me that means that the roofing company over charged the insurance company by $1,000. Millions of dollars are wasted because of this.

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PostPosted: Fri Dec 12, 2008 1:50 am   Post subject:   

Couldn't agree more twc, problem is there is nothing legally wrong with the whole 'rebate' thing...there are even glass (auto) companys doing it, heck just learned there are ins. agents doing it on premiums...amazing what people will do to undercut someone else...hard for an honest man to stay in business..I respect your integrity



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PostPosted: Mon Jul 19, 2010 1:50 am   Post subject: Insurance  

I am an insurance agent and if an agent gets caught giving rebates he will lose his license it is not allowed. Whoever is giving rebates better watch out, because I will report it and other agents will to.


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PostPosted: Wed Jul 21, 2010 11:14 am   Post subject:   

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PostPosted: Wed Jul 21, 2010 5:42 pm   Post subject:   

Quote:
I am a nationally recognized attorney who has been singled out by as a "leading tax professional"




That's great! When the discussion turns to estate taxes and tax planning uses of life insurance after 1-1-2011, your insights will no doubt be invaluable!!


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PostPosted: Wed Jul 21, 2010 7:08 pm   Post subject:   

My life-giver (Mother) told me that I keep a clean room. She also said I was her favorite son (only son).



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PostPosted: Thu Jul 22, 2010 3:14 am   Post subject:   

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That's great! When the discussion turns to estate taxes and tax planning uses of life insurance after 1-1-2011, your insights will no doubt be invaluable!!






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PostPosted: Thu Jul 22, 2010 4:37 am   Post subject:   

Quote:
I am a nationally recognized attorney who has been singled out by as a "leading tax professional" (New York Times), "an accomplished writer on taxes" (Wall Street Journal) and "an authority on tax planning" (Financial Planning Magazine)....




Must be tough to get that ego through a normal door.



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