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Confirmation of Deductible Payment

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Confirmation of Deductible Payment

P1Mitigators™ — Jacksonville, FL — (904) 891-8435

All insurers are required by state law to pay their deductible (or the portion that is equivalent to their repairs) to their 1st chosen contractor. The insurance carrier has the right and will sometimes ask, require or demand proof that this deductible has been physically paid to a contractor — or both parties could be accused of insurance fraud.

How the deductible is being paid

Property & Claim Details

How a Deductible Actually Works

Contractor Estimate / Damages

$20,000

Homeowner knows it. Carrier knows it. Carrier agrees to 100%.

Your Deductible

$2,000

So how much does the carrier send?

Carrier Sends You

$18,000

If you guessed $18,000 — correct!

But, if you think they “kept” the $2,000 as your deductible — you’d be incorrect. The carrier knows the total is $20,000, so they intentionally send only $18,000 — forcing you to pay the $2,000 difference directly to the chosen contractor. Just like a co-payment at the doctor’s office, the homeowner physically has to pay it to start or complete the process. You can and should confirm this with your carrier — they will surely say yes.

See It in Action — $20,000 Claim Example

Insurance Claim Breakdown

Example — Hurricane / Storm Damage Restoration

$20,000

Description
Amount
Who Pays
Total Contractor Estimate / Damages
$20,000.00
Carrier Approved
Less: Homeowner Deductible
($2,000.00)
You (Out-of-Pocket)
Insurance Proceeds Check Mailed to You
$18,000.00
Carrier Pays

Your Total Out-of-Pocket Cost

Deductible only — nothing more

$2,000.00

Carrier Pays (Proceeds)

Goes directly to contractor for repairs

$18,000.00
Total Claim Value
$20,000.00
$2k yours + $18k carrier

The retail price is never the same as the insurance price. Your deductible IS the job cost.

The Deductible IS the Job Cost — There Is No Price Shopping

On a true restoration job paid with insurance proceeds, all you pay is your deductible — nothing more. Your deductible IS the job cost.

This is not a retail job. This is insurance proceeds work — a long timeline, and supplements (unforeseen labor and materials) are often involved. Because of that, the retail price is never the same as the insurance price, and there is no price shopping when a contractor does the job for the quoted insurance proceeds.

Don’t let the insurance company fool you into chasing 35 estimates — taking time off work and burning your own money — just to save them a few dollars. On a covered restoration claim, you pay your deductible and nothing beyond your deductible.

You can and should confirm this with your insurance carrier — but the answer is the same: on a true insurance-proceeds restoration project, you only pay your deductible.

How Payments Split Across Contractors

How the payments split across contractors — running tally, insurance check, first-come reality, roofers, and an example scenario showing a $5,000 hurricane deductible on $20,000 total storm damage
Key takeaways — tree company gets paid first ($3,500), tarping company finishes the deductible ($1,500 absorbs the remaining $5,000 out-of-pocket), insurance check covers the rest ($15,000 goes toward the final roofing bill)
Crucial warnings for Florida homeowners — contractor scams (waiving deductibles is a third-degree felony in Florida) and keep every receipt to submit to your insurance adjuster

Other Forms of Payment

Supplement — additional (unforeseen) labor and materials needed to make the homeowner whole again. On a roof, for example, we can’t always see all the damage until the shingles and underlayment are removed first — or how large a tree really is when it’s buried under a shed or a living room.

Recoverable Depreciation (RD) — shown on your policy payout in parentheses — is the money the carrier holds back until you prove the job has been completed. This RD money is also paid to the contractor working on the project, as an “insurance proceeds” type of arrangement.

Provided by P1Mitigators™ (Jacksonville, FL) for informational purposes only — this is not legal advice. Always confirm your deductible, supplement and recoverable depreciation details directly with your insurance carrier. Questions? Call P1Mitigators at (904) 891-8435.

This document will be a part of your entire job folder once signed and saved.