What happens when you hit your insurance deductible on a home claim?
Short answer. Once the covered damage on a homeowners claim is larger than your deductible, the insurer pays the amount above it, usually in stages. The first check covers the approved damage minus the deductible and any depreciation held back, supplements add items found later, and on a replacement cost policy the held-back depreciation is released after the work is done. You pay your deductible to the contractor.
The payments that follow
- First payment. Replacement cost minus depreciation minus deductible. It may be made out to you and your mortgage company.
- Supplements. If the roofer finds items the estimate missed, such as decking damage or code-required drip edge, a supplement with photos can add them.
- Recoverable depreciation. On a replacement cost policy, released after the final invoice is submitted.
- Other coverage parts. Contents, other structures and living expenses are paid separately if they apply, without a second deductible for the same storm.
What does not change
- Your deductible stays the same no matter how large the claim grows.
- Policy limits still cap what the insurer pays.
- Exclusions still apply to items the policy does not cover.
Mortgage company involvement
If your lender is named on the check, it may hold funds and release them as the work progresses, especially on larger claims. Plan for this when scheduling the roof.
Keep an eye on deadlines
Many policies require the work to be finished and the depreciation claimed within a set time. Ask your adjuster for the deadline in writing.
See recoverable depreciation, supplements and mortgage company checks.