Appraisals: Double Paying Your Deductible?

Example: Ins. Company Under Deductible Estimate:

                                            Summary for Dwelling

Line-Item Total                                                                                         298.31

Material Sales Tax                                                                                     3.51 

Replacement Cost Value                                                                         $301.82

Less Non-recoverable Depreciation                                                     <0.00>

Actual Cash Value                                                                                    $301.82

Less Deductible                             [Full Deductible = 500.00]          (301.82)

Net Claim                                                                                                   $0.00

Example Ins. Company Undisputed Payment Estimate:

                                              Summary for Dwelling

Line-Item Total                                                                                         21,281.73

Material Sales Tax                                                                                     58.32

Subtotal                                                                                                       21,.340.05

Overhead                                                                                                     624.05

Profit                                                                                                             624.05 

Replacement Cost Value                                                                         $22,588.15

Less Non-recoverable Depreciation                                                     <87.07>

Actual Cash Value                                                                                $22,501.08

Less Deductible                             [Full Deductible = 500.00]             ($500.00)

Net Claim                                                                                               $22,001.08

In either example, if Appraisal is timely invoked and the Appraisal Award comes out in our favor, you will get an Appraiser Award or Umpire’s Award with a corresponding Estimate.

That Appraisal/Umpire Award will also factor in the Deductible. That is not an error. Appraisals are a reassessment of the original claim, they are not awards in addition to what was previously approved. That is where the misconception is. So, when you get an Award, think of the Appraisal as a time machine, going back in time and replacing the original coverage determination with the current Award. 

Lastly, about deductibles: They are non-negotiable. The same reason your Insurance Company owes you money after a loss is the same reason why you are responsible for your deductible. You can’t have one without the other. There is no law, lawyer, or Court that will excuse your deductible responsibility. If you have a deductible, only YOU the Insured are responsible for paying for those portions of damages. In fact, in Florida it’s a 3^rd Degree Felony for Marketing Companies, Contractors, Lawyers, Public Adjusters, and the like to “pay, waive, or rebate all or part of an insurance deductible applicable to payment to the contractor for repairs to a property covered by a property insurance policy.” – Fla. Stat. §489.147. 

Appraisals are a helpful and relatively stress-free way to dispute insurance coverage. They may take a few months, but they hardly ever require suing. I recommend this path for all homeowners who are unhappy with their insurance company’s coverage and wish to avoid litigation. If you have any questions regarding Appraisals, their costs, and your eligibility, please contact QT&T at (407) 452-4918 or PriorityHomeowners.com for a free claim evaluation.