Most people go their entire lives and never experience sudden damage to their home and a resulting homeowners insurance claim. Because of this, most people don't know that fires, water damage, storm damage, and a wide variety of other types of damage occurs to homes in Middle Georgia every single day. Most people also don't know that there is an entire industry that services damaged homes and the insurance claims that they produce. This industry is made up of all types of people and businesses; contractors, cleaning companies, garment restoration companies, document restoration companies, drying companies, if something can be damaged you can bet that there is somebody out there that can help you bring it back! This industry is known as the restoration industry, because it focuses on restoring your property after it becomes damaged and delivering it back to you as useable and valuable as it was before the damage occurred.
I have spent the last 32 years specializing in the restoration of damaged homes and property, and the purpose of "The Restoration Corner" is to discuss the various issues that arise during a restoration project.
Let's start with everybody's favorite part of an insurance claim: the deductible!
Maybe it's just me, but I don't like to spend money when I wasn't planning on it. Actually, I suspect that you don't like to either, and having to come up with an insurance deductible all of a sudden is one of the worst kinds of unplanned expenses! What is the deductible all about, and why do we have to have one?
In property insurance, the "deductible" is simply the dollar amount of any damage that you agree to pay before your insurance kicks in. It's called a "deductible" because your insurer gets to "deduct it" from any claim payment they make. Obviously, the more money you agree to pay before the insurance company steps in the less expensive the insurance premiums are. While deductibles are a real pain in the wallet, they play an important role in the concept of insurance. Having a deductible to pay means that you have "skin in the game," a "dog in the fight," or some other cliche that simply means you have a financial interest in the cost of the needed repairs. Think about it; if there were no deductibles, then people would be making clams for the most insignificant amounts of damage and the cost of insurance would skyrocket! Insurance is costly enough as it is thank you very much, and we don't need to do anything to make it even more expensive!
When damage occurs and an insurance claim is made, the temptation is there to somehow avoid having to pay your deductible. I'm here to tell you, resist that temptation, at least the temptation to do it in ways that are ethically challenged. To begin with, you made a deal with your insurance company, and both of you pinky-swore and spit-shaked that you would pay the first amount of any damage and they would pick up the rest. Plainly speaking, to try to get around the deductible in an unethical manner is to go back on your word.
Most attempts at beating the deductible involve colluding with some contractor or repairman to submit a bill to your insurance company that includes your deductible. Here's a thought; any contractor that will help you cheat your insurance company will probably cheat you. And listen up contractors; any homeowner that will cheat his insurance company will probably cheat you as well! If you have an insurance deductible, do the wise thing and save that amount of money up in a rainy day account and pay it if you have a claim.
If you don't have the money to pay the deductible or just can't stand to pay it, then there is an ethically sound way to avoid it. Do some of the work yourself, or don't have some of the work done at all. For example, if you have water damage to a room that requires drywall work, trim, and paint, and the value of the paint work is about the amount of your deductible, work out a deal with your contractor where they get it ready to paint and then you paint it.
The concept of the deductible is important to the viability and affordability of homeowners insurance, and the insurance deductible is a necessary evil in an insurance claim. When you are purchasing or renewing your policy, choose a deductible that you can afford and rest easy knowing that you will be able to keep up your end of the bargain if you ever have to make a claim!
