This is one of the most frustrating parts of the insurance claim process, and it happens on almost every claim. You get the insurance estimate, you get your roofer's estimate, and insurance is lower. Sometimes by a lot. And you are left wondering who is right.
Here is what is actually going on, because it is not what most people think.
Your roofer is probably not overcharging you
A reputable contractor's estimate reflects what it actually costs to do the job correctly. That means quality materials, experienced labor, proper equipment, permits, disposal, overhead, and profit. Every legitimate business needs all of those things to stay open and do good work.
Insurance estimates leave things out
Insurance adjusters use software to generate their estimates. That software calculates the scope of work based on the damage they document. The problem is that it frequently underestimates or omits things.
Missing line items. The adjuster might not include ice and water shield, drip edge, starter strip, or other components that are standard in a proper roof installation and required by current building code. If your old roof did not have drip edge and the current code requires it, that needs to be in the estimate.
Underpriced labor. Insurance labor rates do not always reflect what it actually costs to hire qualified roofers in your area. The rate insurance calculates might be based on regional averages that are outdated or do not account for your specific market.
Missing overhead and profit. Insurance companies will sometimes leave off overhead and profit from their initial estimate. But those are legitimate, necessary business costs that every roofing company has. Without them, a contractor literally cannot operate.
Skipped code upgrades. Building codes change over time. What was acceptable when your original roof was installed may not meet current requirements. If your policy includes a code upgrade provision, insurance should cover bringing your roof up to current code. But it is often not included in the initial estimate.
What you can do about it
You have the right to supplement your claim. This means going back to the insurance company with your roofer's estimate and documentation showing what was missed or underpriced. Your roofer can provide the detailed breakdown and supporting photos, but you are the one who communicates with your insurance company and submits the supplement.
Supplementing takes work. It requires back and forth with your insurance company, and they do not always make it easy. But it is your right, and it usually results in a higher payout that better reflects the actual cost of the work.
If you decide not to supplement
Some homeowners just do not want the hassle, and that is understandable. If you decide not to supplement, your options are to pay the difference out of pocket or to finance the balance. Either way, the cost of the actual work does not change. It is just a question of who is paying for what.
What is not recommended is finding a roofer who will do the job for whatever insurance gives you. If someone will do a full roof replacement for an amount you already know is too low, ask yourself how they are making that work. The answer is usually cheap materials, cheap labor, and corners cut. That is not a roof. That is a future problem.
Dealing with a low insurance estimate? We can provide the detailed documentation and line-by-line breakdown you need to supplement your claim. You handle the communication with your insurance company. We give you the ammunition. Contact us.
"The work was phenomenal and so were the workers. They had to replace and repair water damaged wood and did a fine job. Even with that the cost was less than the other roofing companies I inquired about."Suzan Packham , Google Review