Deductibles
As a roofing contractor specializing in hail damage insurance claims, it’s important to be aware of the laws surrounding deductible payments in Wisconsin. According to Wisconsin Act 24, section 100.65 (2), “No residential contractor may, including in any advertisement, promise to pay or rebate all or any portion of a property insurance deductible as an incentive to a consumer entering into a written or oral contract with the residential contractor to repair or replace a roof system or to perform any other exterior repair, replacement, construction, or reconstruction of residential real estate.
In other words, it is illegal for contractors to offer to pay or rebate any part of a homeowner’s deductible as an incentive for them to hire our company for repairs or replacements. As a reputable and professional roofing contractor, we follow the law and do not offer this type of incentive to our clients.
While it may be frustrating for homeowners to have to pay a deductible, it is a common and necessary part of the insurance process. We understand that paying a deductible can be a financial burden, but there are legal options available for offsetting this cost. One option is for homeowners to use the funds from their insurance claim to pay for the repairs or replacements.
Here’s an example of how this can work: let’s say a homeowner has a hail damage claim with a $1,000 deductible. The insurance adjuster agrees that the roof, gutters, and window screens have been damaged and need to be repaired. The adjuster creates an estimate with a total replacement cost value (RCV) of $20,000. If the homeowner decides not to replace their gutters but still has the roof and window screens repaired, they can use the insurance funds to pay for the roof and screens and hold back the depreciation on the work that wasn’t completed. In this case, the homeowner would have a bill for $17,000 for the roof and screens but no bill for the gutters. The insurance company would also have paid them $2,000 in ACV funds for the gutters. This can help the homeowner offset their deductible without breaking the law.
By understanding these options and working with a reputable and law-abiding contractor like ourselves, homeowners can ensure that their home is repaired to the highest standards and that they are protected.
