What if my repair costs less than what the insurance co. gives me?

Question

:et's say there is hail damage to your roof and you file a claim. The insurace company estimates your losses at $10,000 and cuts you a check for that amount. You get it fixed for only $5,000. Can you just keep the remaining $5k? It might seem like a silly question, but it seems too good to be true. Thanks!

Answer 1

Be very careful. If you had a legitimate estimate from an approved contractor and then decided to do the work yourself instead, you might get away with it... but it won't necessarily be easy. Let's say you or whomever you hire doesn't do a great job on the repair - and it leaks or fails again. If you call the insurance company, they'll have a record of your past claim, and if the work wasn't done to specifications, they'll want to speak to your contractor... and it won't take long to figure out you pocketed the extra. Depending on how the company decides to look at it, you might be on your own for the next repair or you could even be considered guilty of fraud.

Whether you decide it's worth the risk is up to you... just know what you might be getting yourself into.  

Answer 2

Yes, you can keep the money.  However, the total amount of your claim is reflected in the rise in your insurance rates (which happens after every claim).  Speak with your agent to see if giving back the unused portion of the claim will keep your rate lower.  

Answer 3

I have met this kind of situation before,here is the place I found useful.http://insurance.free-onlinetip.info/ins...

Answer 4

Yes, keep the money. That's what you pay insurance for.

Answer 5

Even if the insurance company allows you to keep the money, you might have to pay tax on it.

Also, if someone agrees to repair your roof for only half the insurance company estimate, they are probably not going to do a very good job.  Have the repair done by a good repairer, even if it costs more.