How much does insurance pay after the deductible?
Short answer. Insurance pays the covered loss amount minus your deductible, up to your policy limits. On a homeowners claim with replacement cost coverage, the first check is usually the actual cash value minus the deductible, and the remaining depreciation is paid after repairs; you pay the deductible to the contractor, not to the insurer.
The basic math
Covered loss minus deductible equals what the insurer pays, up to your limits. If roof damage is estimated at $13,000 and your deductible is $1,000, the insurer's total share is $12,000.
How it is paid on a roof claim
- Estimate: $13,000 replacement cost, with $3,000 of recoverable depreciation.
- First check: $13,000 minus $3,000 minus $1,000, which is $9,000.
- After the roof is finished and invoiced: the $3,000 is released.
- Your share: the $1,000 deductible, paid to the roofer.
When and how you pay the deductible
You never write the insurer a check. The deductible is simply subtracted from what they send, and you pay it toward the job, usually on the schedule in your contract. In Georgia it is illegal for a contractor to waive or rebate it, and going along with a waived deductible can create insurance fraud problems for the homeowner too.
When the payment is smaller than you expect
- If the loss is less than the deductible, nothing is paid.
- A percentage wind or hail deductible can be several thousand dollars on its own.
- An actual cash value roof endorsement means the roof depreciation is never released.
- Prior payments on the same claim are subtracted from later checks.
Related: the percentage wind and hail deductible, whether a roofer can pay your deductible, and ACV vs RCV.