Insured Responsible for Paying Deductible when Insurer Elects Right to Repair

There are property (homeowner) insurance policies that contain right to repair clauses.  These right to repair clauses give the insurer the option to repair the loss with its preferred contractor.  Some insurers even have a captive restoration contractor that serves as its preferred contractor.  Although such right to repair clauses are enforceable, there still should be an agreement as to to the scope of repairs.  The insured should ask the insurer the details associated with the scope of repairs and there ideally should be an agreement as to the scope.  When an insurer elects this right to repair, technically, the insurer is assuming responsibility for the repairs being done properly.   

If an insurer elects the right to repair option, the insured is still responsible for the deductible required by the policy.  The insured’s obligation to pay the deductible is not eliminated when the insurer elects to repair the loss per the right to repair clause in the policy.  See Ganzenmuller v. Omega Insurance Company, 43 Fla.L.Weekly D948e (Fla. 2d DCA 2018).

If you have concerns when an insurer elects its right to repair, make sure to consult with legal counsel that understands the issues involved when an insurer makes such election and assumes responsibility for the repairs.

Please contact David Adelstein at or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.


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