Deductibles: To Pay or Not To Pay

When your home has just been damaged and you’re staring down the stress of repairs, it’s tempting to see a waived deductible as a small relief in a sea of expenses. A contractor may offer to “take care of it” or assure you that “everyone does it” — making it seem harmless or even helpful. In that moment, you might think: Why not save a little money? Haven’t I paid enough already? But what seems like a break in the short term can lead to serious trouble in the long run. Many homeowners don’t realize that waiving a deductible is often illegal — and could put both them and the contractor at risk. It could also jeopardize your entire insurance claim, leading to delays, denials, or even fraud allegations. Even worse, cutting corners with repairs to absorb that cost can leave your home vulnerable to future damage. Before you make a decision, it’s important to understand the full scope of the risks involved when skipping your deductible.Here are the key risks and potential consequences of not paying your deductible:

🔻 1. It’s Illegal in Many States

In many states, failing to pay your deductible or working with a contractor who “waives” it is considered insurance fraud.

• Some contractors may offer to “cover” or “eat” the deductible, but this is often done by inflating repair costs or cutting corners — both of which are illegal practices.

• You and the contractor could both face fines, denied claims, or legal action.

💼 2. Your Claim Could Be Denied

Insurance companies require you to pay the deductible as part of the contract you agreed to when purchasing your policy.

• If it’s discovered that you didn’t pay it — or tried to work around it — your claim could be reduced, delayed, or denied altogether.

🛠️ 3. Poor Quality Repairs

If a contractor offers to “waive” your deductible, they may cut corners on materials or labor to make up the difference.

• This can lead to incomplete or low-quality repairs, putting your home at risk for future problems.

📉 Impact on Your Coverage or Reputation

If the insurer suspects fraud or manipulation:

• You could be flagged as high-risk, making future claims more difficult.

• Your premiums may increase or your policy could be non-renewed.

• It may also be difficult to switch to another insurance provider if there’s a history of suspicious claims activity.

🧾 4. You’re Still Contractually Obligated

Your deductible is part of the agreement you signed with your insurance provider.

• Skipping it breaches that agreement, and you could be held financially or legally responsible later if it’s found out.

✅ What You Should Do Instead

• Plan ahead: Know your deductible amount and set aside emergency funds when possible.

• Be honest: Always work with licensed, reputable contractors who follow proper billing practices.

• Ask questions: If a contractor offers to waive your deductible, that’s a red flag. Thank them for their time and run in the opposite direction.

 

Choosing to skip your deductible may seem like a small shortcut, but it can have big consequences — legally, financially, and structurally. What feels like a favor from a contractor can quickly turn into an insurance headache or even a fraud investigation. Your policy is a contract, and honoring it not only protects your claim but also your peace of mind. Trustworthy contractors won’t ask you to bend the rules — and the good ones won’t need to. Protect your home by staying informed, asking questions, and insisting on transparency throughout the claims and repair process. In the long run, doing things the right way will always pay off.