Home Improvement Contractor - Licensed Contractors

Is it legal for a contractor to cover your deductable?

I had a contractor who has told me he "would take care of my decutable" so nothing would come out of my pocket. Is that legal?

Public Comments

1. Depends, sonds like he is cutting you a deal.
2. Why would it be illegal? He can offer to pay the deductable if he wishes and if he does, count yourself lucky!
3. Yes, it is most likely legal
4. It is insurance fraud, if he gives one price then does the work for less. You both would be guilty. If the contractor makes some changes in the scope of repairs, method of repairs or quality of materials it would be legal.
5. The contractor is going to inflate the bill on other things to cover the deductible. It may not come out of your pocket but you can rest assured, it is not coming out of his either. He is not losing that money, there will be extra work to be done and some prices increases so the insurance company is essentially going to pay the deductible. Check this contractor out carefully and get all things in writing. Get things such as start date? expected completion?, what happens if he gets in the project and finds other repairs to be made, who will pay for those? what types of materials? is he insured, licensed, and bonded? check with the BBB to see if he has complaints there? But most importantly keep daily logs of everything, phone calls - day, time and the general conversation, what time he shows up for work, how many people, how long did they stay each day, etc. Those are things you can do yourself and he never knows it is being done. Get everything in writing, if he is going to make some changes or extra work, get it in writing along with a price and who is expected to pay and you and him both sign it. Remember, if it ever goes to court - generally, he who has the best documentation wins.
6. I see this so much with auto glass claims. If you use the thieving Insurance agent's contractor, the glass ends up costing you at least twice as much as the deductible (you pay twice, the paid insurance premium plus the contractor). If you go driving around and get bids and explain what the deductible is, you pay nothing for the glass. Same glass and probably better installation.
7. Deductibles are for a reason,You pay a lower premium that's why they have deduct ables.Anyone who is offering you this kind of a deal is a crook.Stay away from them they will cheat you too in a heartbeat.