by oceanriver » Thu Sep 23, 2010 07:18 pm
Hello there MaxHerd! Hey, I have one more final question about the deductible, which might be is somewhat a challenging question, but first, I want to say, thanks again to you Max, to the Insurance teacher, and all others who also replied and answered my questions, through which you also helped me understand the process having to do with the deductible.
. Anyway, I’m still curious to know the other part which I had in my questions about the deductible, and which I believe was not answered completely. I believe it was you Maxherd who said in one of your replies:
“If you do not pay the deductible to the contractor, the insurance company will take it out from the recoverable amount”,
but, you went no further than that, so my question again goes back to the question I asked in my first post, and that is: after the insurance company deducts the deductible, (as you say) from the recoverable check, and the insurance co. keesp it, is the insured still responsible of paying another same deductible-amount to the contractor?
If you can remember, I asked whether it was, true or not, what the adjuster had told me. Remember I said the adjuster had told me I would end up paying DOUBLE the deductible, and you said that no one ever pays the deductible two times? Well, if the insurance takes it out from the recoverable, or second check, as you say, because it was NOT paid to the contractor the first time, along with the first initial payment from the insurance co., and they keep it, then, is that when one could end up paying the deductible TWO TIMES, just as the adjuster had told me, that is, if the contractor ALSO insists he get paid the deductible?
If you will remember, I also asked if it was, LEGAL or not; for BOTH the insurance co. to deduct it from the recoverable, KEEP it, and then for the contractor to ALSO demand that one pay it, which would only mean one thing; one WOULD indeed end up paying two times, or DOUBLE the deductible, right? Even though I now understand the other process, now I’m REALLY curious to know this other part of my original question. I also think it is not only a real fascinating thing to know, but also a very, very IMPORTANT piece of information for ALL out there to know, and to understand very clearly, cause it does make a difference. What say you my friends? Thanks to all, and best regards.
. Anyway, I’m still curious to know the other part which I had in my questions about the deductible, and which I believe was not answered completely. I believe it was you Maxherd who said in one of your replies:
“If you do not pay the deductible to the contractor, the insurance company will take it out from the recoverable amount”,
but, you went no further than that, so my question again goes back to the question I asked in my first post, and that is: after the insurance company deducts the deductible, (as you say) from the recoverable check, and the insurance co. keesp it, is the insured still responsible of paying another same deductible-amount to the contractor?
If you can remember, I asked whether it was, true or not, what the adjuster had told me. Remember I said the adjuster had told me I would end up paying DOUBLE the deductible, and you said that no one ever pays the deductible two times? Well, if the insurance takes it out from the recoverable, or second check, as you say, because it was NOT paid to the contractor the first time, along with the first initial payment from the insurance co., and they keep it, then, is that when one could end up paying the deductible TWO TIMES, just as the adjuster had told me, that is, if the contractor ALSO insists he get paid the deductible?
If you will remember, I also asked if it was, LEGAL or not; for BOTH the insurance co. to deduct it from the recoverable, KEEP it, and then for the contractor to ALSO demand that one pay it, which would only mean one thing; one WOULD indeed end up paying two times, or DOUBLE the deductible, right? Even though I now understand the other process, now I’m REALLY curious to know this other part of my original question. I also think it is not only a real fascinating thing to know, but also a very, very IMPORTANT piece of information for ALL out there to know, and to understand very clearly, cause it does make a difference. What say you my friends? Thanks to all, and best regards.
Posted: Thu Sep 23, 2010 09:13 pm Post Subject:
after the insurance company deducts the deductible, (as you say) from the recoverable check, and the insurance co. keesp it, is the insured still responsible of paying another same deductible-amount to the contractor?
If you can remember, I asked whether it was, true or not, what the adjuster had told me. Remember I said the adjuster had told me I would end up paying DOUBLE the deductible, and you said that no one ever pays the deductible two times? Well, if the insurance takes it out from the recoverable, or second check, as you say, because it was NOT paid to the contractor the first time, along with the first initial payment from the insurance co., and they keep it, then, is that when one could end up paying the deductible TWO TIMES, just as the adjuster had told me, that is, if the contractor ALSO insists he get paid the deductible?
Oceanriver . . .
I'm not sure why you are having so much trouble with the concept. You continue to believe that the insurance company is keeping money. They are not.
When the insurance company PAYS a claim, they pay according to the terms and conditions of the contract (known as the policy). In a homeowner's policy, there is a discussion of deductible. If you are having trouble understanding the discussion as it has been presented so far, I'm going to give it one more shot. If you still don't understand it, maybe we need to talk on the phone. You can PM me for my number or to send me yours -- DON'T POST IT HERE!!
So here goes:
A deductible is the amount of a claim that the INSURED (you) agrees to pay BEFORE the insurance company ever pays any part of the claim. If you have a $500 deductible, you are responsible to pay that amount to whomever performs the repairs or supplies replacement articles.
When the insurance company agrees that the value of a loss, in total, is $10,000, and the contract has a $500 deductible, the total liability of the insurance company is $10,000 - $500 = $9,500. (You seem to understand that math.)
So if the insurance company writes a first check for $7,500, how much will the final check be written for when the total repair invoice is submitted for $10,000? Here's the math:
$10,000 - $500 = $9,500 - $7500 = $2,000.
The final check will be for $2,000. That plus the first check for $7,500 plus your check for $500 totals $10,000. No one has paid two deductibles, and no one has "kept" any deductibles.
Except you . . . for not having paid your $500 to the contractor with the first check from the insurance company. So you have to pay it with the second check.
I cannot think, at the moment, of any other way to explain this to you more clearly.
As to your other question, about the adjuster having said you will pay two deductibles, I thought I answered the question somewhere (you posted your question in two different forums so it might be in the AUTO forum where your post first appeared). But I'll try again:
No one was there for the conversation but the two of you. I was not there, and no one else here in the forums was there. What was said and what was heard are, most likely, two different things.
Could the adjuster have said what you claim? Anything is possible when a human being is involved. Should the adjuster have said what you claim? NEVER. It's incorrect.
Did you hear the adjuster say something you mistook to mean "pay two deductible"? As much trouble as you are having coming to an understanding of the whole process, I might believe that is exactly what happened.
The adjuster might have said something like, "Whether you pay the deductible with the first check or with the second check, you still have to pay the deductible." And you heard, "If you don't pay the deductible now, they'll take it out of the second check, too." But I don't think the adjuster would have said anything of the sort. Because that's not what happens.
The deductible is not taken out of the payment, it is not PAID with the payment. Because YOU HAVE TO PAY THE DEDUCTIBLE, not the insurance company.
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