Insurance company would not agree to an estimate - anything i can do?

Question

So i had some roof damage and opened a claim with my insurance. I asked my contractor to give me an estimate and submitted that to the insurance. I trust this guy's work and would really prefer to have this done by him. With that said, i understand that anytime you mention insurance, estimates get bigger then what it might have cost otherwise. However insurance company came up with a cost that is 3 times lower then the contractor's estimate. (when i told him he just laughed). I asked another contractor that i've dealt with before and he was in the same ballpark with my contractor's price.

With that said, do you guys know if there is a "universal" insurance rule that allows me to pick my own contractor. Again, i am not trying to golden-plate my roof, but looks like that gap is so big that i can't even start the work. And i still have holes in the roof and it's raining...

Derek Lacy · Answer

There is a clause in the policy that you may request an arbitration on the damages.  You and the insurer each pick your representative, those two pick a third party, whenever two of the experts agree on a price that is the price paid.

Now don't expect this to be a cheap process, you will most likely have to hire a structural engineer, and you will also have to pay half of the umpire (third guy)'s fee.

To give good advice you really need to give us all the policy information and both parties information (your contractor and the insurers opinions).

It could be the insurer is acting in bad faith, but most likely it is they are not willing to cover the full cost of the project as it was only partially damaged and/or you picked the lowest cost insurance policy and it includes depreciation, deductible and maybe even an under-insurance penalty.

Get us all more information and we can help diagnose, but you also have the option of consulting/hiring a public adjuster to help you with your issues and to be your representative.

Jake Landry · Answer

Insurance adjusters don't set the price. They simply scope the damage to the property and measure the amount of roofing and other collateral damage. They use different pricing programs to figure the cost to repair or replace the damaged property. Its possible that they don't see all the damage or measure the roof properly but In most cases, they are able to get right on or close enough that there wouldn't be to large of a gap between their estimate and the contractors estimate. If they do miss something or don't measure properly, you and your contractor can file a supplement and the insurance company will pay the difference if there is documentation showing where the missed or unseen repairs are. Depending on the amount of loss or the cost of the repairs sometimes dictates how the claim is paid out. Here is how it typically goes................... ( I'm going to use hypothetical numbers below)

Total amount of claim  +10,000.00

less depreciation          -  2,000.00 (depending on your policy this money may be recoverable if all the work is completed and it will be paid at the end)

less deductible             -  2,000.00 (this is your responsibility. plenty of contractors will cover this for you but you will definitely get a shit job if you choose one of these guys because they will cut every single corner to make up their profit they lost by "covering your deductible")

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ACV (actual cash value) = 6,000.00 - This is usually the first of 2 checks you will receive. After the work is completed, you would file for the recoverable depreciation (2,000.00 from above) and they will send out your final check.

To sum up - You should be able to get your entire roof replaced for no more than your deductible. The exception to this rule is if you decide to upgrade your roof then you would also be responsible for that additional cost which is above and beyond the claim amount.

If for any reason, the contractors numbers and the insurance companies numbers don't match, than someone either mis-measured or one of the parties pricing is off. Either way, the insurance companies number one goal is to get your claim resolved and paid for as fast as possible. Feel free to ask any questions. Hopefully this was helpful.

Rob Beland · Answer

You should have gotten a detailed breakdown of the estimate from the insurance company and the same level of detail from your contractor. Compare the two estimates. Why is one higher? Labor higher? More squares of roofing? You need to know specifically what the differences are with the estimates. Once you have that info you can determine how to proceed. Maybe the insurance company missed something. Maybe your  contractors labor rate is too high.

Derek Lacy · Answer

Since they have the sheet rock missing.  Call the adjuster and ask.  The normal adjuster has 1200 open claims that he is working on at any time.  Innocent mistakes happen.  You will find an adjuster will fix a mistake quickly.  Now if he feels the sheet rock is not damaged...  That's another story.

Also, say that the 1 coat of paint does not do it, you can always ask for a claim supplement to cover that.

It actually sounds like you do not have the best of contractors working on the situation, as a contractor that is familiar with insurance would have been able to explain that situation.  Those contractors do charge more due to the fact that they have the experience to help you the customer out.  Whereas other contractors raise the price, just because they think they can.

I would highly suggest calling your insurance agent and asking for their preferred contractor to work with.  I know which one we tell our clients to call.  The one that can explain the process and do the work right.  Your agent wants you happy, they'll get a good guy out there, and even though they might charge more, you're only out your deductible.

Dmitri K. · Answer

Thank you all for your replies. I am trying to get another estimate based on the insurance writeup and have it be as detailed as possible. To give you an idea - the roof was damaged in a few places - basically there are 2 holes and many shingles are missing is several spots. Areas of attic and bedroom need new insulation, sheetrock, paint. Contractors insist on new roof, because they can not guarantee their work if this gets patched up. (this is of course is working in my favor if i can get a half aged roof replaced).

The insurance is willing to pay $3300 + ~$1200 for depreciation when work is completed. My deductible is a little over $1000. So altogether this comes up to ~$6500 to complete the work. My contractors estimate was $15000

Seems that i have about 14 SQ of roof. Insurance quoted 1 coat of paint for the room. And they don't seem to quote the replacement of water damaged sheetrock.

At this point my options are to either take what they give me and just patch up the holes. As i can't afford to pay for the full replacement. Or continue to negotiate with both the insurance and contractor to come up with a price that works for both. I do want to do with this this contractor, as i am remote and i've dealt with him before and trust his work.

What is interesting, is that i've been with this company for many years, have 2 cars and 8 homes insured with them(+ umbrella policy), and this is my first claim ever.

Insurance company would not agree to an estimate - anything i can do?

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