September 17, 2024
OLYMPIA, Wash. — Washington state Insurance Commissioner Mike Kreidler has ordered 911-Dry LLC to stop offering to pay customers’ insurance deductibles.
The general contractor, based in Bellingham, provides loss and mitigation services on claims made under insurance policies. The 911-Dry website states the company processes claims on behalf of customers, advertises direct insurance billing, and offers up to $2,500 in “deductible assistance.”
The cease-and-desist order, issued on Sept. 19, requires 911-Dry to stop its practice of “waiving, rebating, giving, paying, or offering to waive, rebate, give, or pay all or any part of a Washington claimant’s casualty or property insurance deductible.”
Deductible assistance is illegal under the state insurance code, which bars service providers from waiving or rebating any part of a customer’s casualty or property insurance deductible.
Why require deductibles?
Despite what a contractor — or auto repair shop, or any professional processing your insurance claim — may say or offer, the policyholder must pay the deductible on their claim.
Insurance companies pay claims based on the cost of the repair, minus the deductible. If a contractor or repair shop offers to waive or pay a deductible, they may be trafficking in insurance claims. This illegal practice can result in inflated claims — to offset the waived deductible — and can entice consumers to use certain service providers for reasons other than the quality of the services that will be provided.
“If it sounds too good to be true, it probably is,” Kreidler said. “A company offering to waive a deductible, or even part of a deductible, could be sending false information to your insurance company about repair costs or making up the difference with cheaper products.”
About the OIC
Kreidler’s office oversees Washington’s insurance industry to ensure that individuals, companies, agents, and brokers follow state laws designed to protect consumers.
For an insurance question or complaint, contact Kreidler’s consumer advocates online or by phone at 800-562-6900.