08/21/2026
HIGH DEDUCTIBLES ARE EXPOSING A MAJOR FLAW IN INSURANCE RESTORATION.
The insurer subtracts the deductible, but the contractor is left to collect it. If the homeowner refuses to pay, the carrier moves on. Yet contractors who waive or disguise deductibles may violate the law and face serious consequences.
Waiving a $5,000 or $10,000 deductible is not helping the homeowner. It means accepting less money while still carrying the labor, material, warranty and liability costs. That is not smart sales—it is financial self-sabotage.
A better system: insurers collect deductibles upfront and hold them in escrow. Once the work is completed and documented, the funds are released to the contractor.
That protects homeowners, contractors and insurers while reducing deductible fraud.
Contractors should stop devaluing the industry, and homeowners should stop seeking arrangements that misrepresent the true transaction.
Collect the deductible. Hold it in escrow. Release it when the work is complete.