Glossary
Taxes & Insurance
Deductible Pass-Through
An attempt to bill a tenant, through CAM, for the deductible amount the landlord pays out of pocket after an insurance claim, rather than the ongoing insurance premium itself. Most leases are silent on deductible recovery, and silence generally means the deductible is not a recoverable CAM charge.
Firm impact
A deductible pass-through can appear as a one-time spike in the insurance line rather than a recurring charge, which makes it easy to miss in a routine reconciliation review. Firms should treat any unusual insurance-line increase as a signal to ask specifically about claims history for the period.
How this gets abused
A landlord files a $50,000 water-damage claim with a $25,000 deductible. The reconciliation's insurance line jumps by $25,000 that year with no explanation, and the landlord later confirms it billed the deductible through CAM even though the lease's insurance clause never mentions deductible recovery.
Practitioner note
Ask whether any insurance claims were filed during the audit period and request the claim documentation, including the deductible amount, alongside the insurance premium invoices. If the lease doesn't explicitly authorize deductible recovery, treat any deductible charge as unauthorized.
FAQ
Questions about deductible pass-through
Can a landlord bill a tenant for an insurance deductible?
Only if the lease specifically authorizes it. Most leases are silent on deductible recovery, and silence means the deductible stays the landlord's cost, not a recoverable CAM charge.
How would a firm even know a deductible was billed?
It often shows up as an unexplained spike in the insurance line for one year rather than a steady premium increase. Ask directly whether any claims were filed and request the claim file if the insurance line jumped unexpectedly.
Does CAMAudit catch a deductible billed as an insurance premium?
When a deductible is billed inside the insurance line and the lease doesn't authorize deductible recovery, CAMAudit's Insurance Overcharge rule flags the amount as an unauthorized insurance charge once the claim detail is entered.
You know the term. Now check the math.
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