1st Option: Waive deductible Some neighbors, some friends, some relatives, some roofers, and some contractors will say that; Everyone does it. It's no big deal No one gets in trouble for it
THE TRUTH It's fraud. If caught the insurance company can cancel the claim and demand that you pay back all money they have paid to you regardless of whether or not you had spent the money of restoring your property.
You could face jail.
Recently municipalities IN THE Denver Area (maybe the the city you live in) have started to crack down and financially penalize (fine) both the contractor and the home owner. If they find out that could lead to your insurance company finding out too. If you turn in the contractor you may avoid the fine however if another property owner does it first and then the contractor comes clean you will be on the hook.
How would they find out? They can require proof of payment.
Did you know that insurance companies have started cracking down in other states and with each state they get more bold and it could be Colorado this year or next or the year after and they could still require proof and without it you could still be in big trouble!!!
POINT IS... IT'S NOT WORTH IT!!!
2nd Option: Use part of the insurance payment to offset the deductible. In this scenario property owners opt to do less work or cut corners to make up for their deductible. This option varies and we have seen lots of ways people have attempted to do this.
A few examples; The insurance company agrees to pay to paint the fence after a hail storm. The their RCV (Replacement Cost Value) amount is $900 however their ACV (Actual Cost Value) amount is $450. You could opt to paint the fence yourself becoming the contractor and that $450 would be yours. The problem is that you probably will not get the RCV, the additional $450 unless you lie and commit fraud. Why? Because the insurance company can ask for invoices and if they do all you will have is material costs and your time. Insurance companies pay property owners minimum wage for work they perform so it's unlikely you would get much more than the ACV (original payment after depreciation). Others we have seen not replace their personal property and use the ACV payment for contents to offset their deductible. Still others have decided not to replace flashings and vents dented by storms. The problem with this is leaking in the future. No matter what any roofing company says... NO MANUFACTURER INSTRUCTIONS INCLUDE REUSING THE FLASHING...EVER! Why... Because eventually it will leak.
3rd Option: Contractor offers to pay you to put their advertisement in your yard. The problem is complex. Are they simply waiving the deductible and disguising it. Are they paying everyone the same for yard sign or does it depend on how much the deductible is. This is is problematic and we have been told by many insurance companies the do consider this waiving the deductible.
4th Option: PAY THE DEDUCTIBLE. This is the surest way to get the most value from the restoration and have all your warranties and maintain the highest quality property and value of that property.
Final Note: Be careful out there... is it worth fraud or less quality or doing work yourself with all of the time and effort and agony to get a fairly small amount of money just to feel you have gotten over on the insurance company?