State Farm Homeowners Insurance Deductible
We recently filed our first homeowners insurance claim in the six years since we bought our house. After a severe storm with winds exceeding 75 mph, heavy rain, and even tornadoes, we discovered that the wood paneling on the interior wall of our living room (which shares a wall with the bedroom) had sustained water damage. The paneling is wet, mushy, and warped, and we want to address this issue before any mold starts to grow. Our roof is only four years old, so we’re puzzled about how the water got in, and we’ll need a professional to investigate.
According to State Farm, this damage is covered under our policy. We have a $3,000 deductible, and they informed us that the deductible will be deducted from the amount they send us for repairs, not paid upfront.
So, if the repairs total $6,000, my understanding is that they would subtract our $3,000 deductible and we’d receive $3,000 for the repairs. My husband, however, believes that we’ll receive the full amount for the repairs, which I find confusing because it seems that State Farm would ultimately pay themselves back for the deductible.
Last year, we experienced a total loss with our car, and they deducted the same amount for the deductible from that payment, resulting in a smaller reimbursement. That experience makes me think we won’t see the full repair cost, which is concerning since we aren’t in a position to cover additional expenses right now.
Does anyone know who’s correct?
You’re correct in your understanding of how deductibles typically work with insurance claims. When you file a claim and have a deductible, that amount is subtracted from the total payout the insurance company provides for the repairs.
So in your example, if the repair costs $6,000 and you have a $3,000 deductible, you would receive $3,000 to cover the repairs. This means you’re responsible for paying the deductible amount to the contractor. Your husband might be conflating the process with how some other types of payments work or might not be fully aware of how deductibles function in homeowners insurance.
Since you’ve had experience with an auto claim where the deductible was deducted from the payout, that’s a good indication that the same principle applies here. It’s always a good idea to clarify directly with State Farm if you have any remaining questions to ensure you both understand the process as it relates to your specific policy. Good luck with the repairs!