How are insurance deductibles paid on a home claim?
How the subtraction works
Say your roof claim is approved at $15,000 replacement cost, with $4,000 of depreciation and a $2,000 deductible.
- First check: $15,000 minus $4,000 depreciation minus $2,000 deductible equals $9,000.
- Second check: the $4,000 depreciation, released after the work is completed and invoiced on a replacement cost policy.
- Your share: the $2,000 deductible, paid to the contractor so the $15,000 job is fully funded.
The deductible is taken once per claim, usually from the first payment. It never comes back in a later check.
Multiple parts, one deductible
If the same storm damaged the roof, gutters, siding and a bedroom ceiling, all of it is one claim with one deductible, even if the payments arrive at different times or go to different contractors.
When the mortgage company is involved
Larger checks are often made out to you and your lender. The lender may hold the funds and release them in stages as work is completed. Your deductible still comes from you, outside of those funds.
It must actually be paid
In Georgia, a contractor cannot legally waive, absorb or rebate your deductible. If someone offers to, the offer itself is a warning sign. See can a roofer pay your deductible and recoverable depreciation.