What happens if you don't pay your insurance deductible?
Short answer. On a homeowners claim, the insurer has already subtracted the deductible from its payment, so if you do not pay it, your contractor is short that amount and can pursue collection, including a lien on the property under Georgia law. If you cannot pay, there are legitimate options like financing or a written payment plan. A roofer waiving the deductible is not one of them.
What can follow an unpaid deductible
- Collections or a lawsuit for the unpaid contract balance.
- A lien on your home. Georgia lien law generally gives contractors about 90 days after completing the work to file one, which can complicate a sale or refinance.
- Warranty problems. Many workmanship warranties take effect only after the contract is paid in full.
- Final payment delays. Some insurers or mortgage companies want proof of completion and payment before releasing the last funds.
If you cannot pay it
- Talk to the contractor before signing. Ask about financing or a written payment plan. You still owe the full deductible, just over time.
- Look at a home equity line or personal loan.
- Check assistance programs. Some local, county and federal programs help low income or older homeowners with roof repairs.
- Choose a smaller scope only if it is honest. If you own the home outright, you may decide not to make every repair, but the insurer may then pay only actual cash value.
What not to do
- Do not accept a waiver, rebate or inflated estimate. In Georgia it is illegal for a contractor to absorb your deductible.
- Do not keep the insurance money and skip the repair if you have a mortgage; the lender has rights to those funds.
See can a roofer pay your deductible, mortgage company checks and percentage deductibles.