Deductible on homeowners insurance

We have some water damage to a wall. Insurance adjuster has estimated $2097 to repair. Our policy has $1000 deductible. The adjuster has offered us a check for $1097. If we accept that check and can get the repair done for much less, which I feel certain we can, can we legally use that check for payment and pay nothing out of our own pocket?

Asked on March 18, 2019 under Insurance Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

Yes, you can. The adjustor came up with the estimate; the insurer, relying on his estimate, has offered you $1,097 to settle their obligations under the policy. What you do with that money is up to you--if it can pay for all the damage so you don't go out of pocket, that is permissible.

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