Contractor wants to take most of insurance money to replace roof

[Terry Hollinsworth]

Contractor agreed to replace my roof if insurance would pay for damages. He came to my door offering his service. To my surprise the insurance company agreed to pay $21,000 for damages. Our contractor quoted us $20,000. Average prices in our area to replace a roof is $11,000 for the size house we have. I'd like to repair other things around the house with the difference. But the contractor made us feel guilty that he worked hard to get us a $1000 in cash. Contractor says his quote is non negotiable and won't budge on price. 

My question is am I missing something? Should I pay the contractor all the insurance money? Why is there a big gap between average roof replacement costs and insurance award?

[Nathan Gesner]

Do you understand the dangers of doing business with someone that shows up at your door uninvited? This is how people get scammed across the nation all the time.  They offer to do work you didnt' even know you needed, and they either do a really bad job or they don't even start and just disappear with your money. For all you know, he has a friend that works at the insurance company that points him to houses, the roofer writes exaggerated claims, he splits the money with his buddy at the insurance company, and moves on to the next sucker. 

Why is the bid so high? Because he's a scammer! Why did you file an insurance claim for $21,000 when you knew it was high and you don't even need a new roof? Because you want extra "free" money to work on projects around the house. I hope you don't get caught.

Shop around for multiple bids with local vendors that have been in business for 5+ years. Cut off all communication with the guy that showed up unannounced, which means you block his number and don't answer the door.