Contractors Are Not Allowed to Pay Your Homeowner's Insurance Deductible

October 16, 2022



Contractors Are Not Allowed to Pay Your Insurance Deductible

In the State of Florida, it is not permissible for a contractor to pay a homeowner's insurance deductible. The reason for this is that the payment of a deductible would be considered an inducement to enter into an insurance contract. Inducements are prohibited under Florida law.

Insurance Deductibles: What Are Inducements?

Inducements are anything of value that is given in order to persuade someone to enter into a contract. They can take many forms, such as gifts, money, or favorable terms. In the context of homeowner's insurance, an example of an inducement would be if a contractor offered to pay your deductible in order to get you to sign a contract with them.

Insurance Deductibles: Why Are Inducements Prohibited?

Inducements are prohibited because they can create situations where people enter into contracts that are not in their best interests. For example, if a contractor offers to pay your deductible, you may be more likely to sign a contract with them even if their prices are higher than another contractor's prices. This could end up costing you more money in the long run.

What Should You Do if a Contractor Offers to Pay Your Deductible?

If a contractor offers to pay your deductible, you should politely decline and find another contractor who does not engage in this type of behavior. There are plenty of reputable contractors out there who do not need to resort to illegal methods in order to get your business.


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