The deductible is the co-pay or responsibility of the insured. Many times the insurance company’s loss statement refers to less deductible applied. This portion or amount of deductible is the agreed upon amount between the insured and insurance company that the homeowner pays to the contractor.

The replacement of damaged property is a shared expense between the homeowner and insurance company. The insured’s annual premium is based upon the agreed upon out of pocket expense for the insured. For example, lower deductibles constitute higher annual premiums for the homeowner. Therefore, a lower annual premium would need a higher deductible for each occurrence.

The responsibility to pay the deductible is the homeowner’s. The Texas Department of Insurance states that it is illegal for the contractor to waive or contribute to a homeowner’s deductible. However, many roofing companies contribute to the insured’s deductibles anyway. They may do so by using sign credits, discounts and rebates. This participation in partial payments may be considered soft insurance fraud.