Are insurance payments deductible, and can you pay a roof deductible over time?
How the deductible actually works
The insurer subtracts the deductible from what it pays. If the roof costs $14,000 and your deductible is $2,000, the insurer pays up to $12,000, and the remaining $2,000 is your share of the contract price. There is no separate deductible bill from the insurer.
Ways to pay it over time
- Roofer financing: many roofers offer financing plans through lenders that spread your share over months.
- Contract payment terms: some contractors let you pay your share in stages, such as at completion instead of up front. Get the terms in writing.
- Savings or home equity: often used for larger percentage deductibles.
What is not allowed in Georgia
A contractor cannot waive your deductible, rebate it, give you a credit that offsets it, or inflate the estimate to cover it. Georgia law prohibits it, and padding an estimate to hide a deductible can be insurance fraud. Read can a roofer pay your deductible in Georgia before agreeing to any offer that sounds like one.
Percentage deductibles
If your wind and hail deductible is a percentage of dwelling coverage, the dollar amount can run into several thousand dollars. Know the number before you file; see percentage deductibles.
The tax question
For a home you live in, homeowners insurance premiums are generally a personal expense and not deductible on federal taxes. Premiums on a rental property are usually a deductible business expense, and a qualifying home office may allow a partial deduction. Roof costs on a personal home are generally not deductible either, though a new roof can add to your home's cost basis. Ask a tax professional about your situation. For how the rest of the claim money flows, see mortgage company checks.