The Step-by-Step Guide to Insurance Claim Supplements for Contractors
As a contractor specializing in storm damage restoration, you know that the initial insurance estimate often falls short. It’s not uncommon for adjusters to miss crucial details or overlook hidden damage, which means the initial claim estimate won’t cover the full cost of the restoration. This is where an insurance supplement comes in. It’s the document you submit to the insurance company to ensure you get paid fairly for all the work required to complete the job.
Navigating the insurance supplementing process can be challenging, but it doesn’t have to be. This guide to insurance claim supplements for contractors will break down the key steps to creating a successful insurance supplement, from identifying missed items to negotiating with insurance adjusters. Let’s get started!
Step 1: Identify Items Missing from The Initial Claim Estimate
The first step in any supplement claim is a detailed inspection of the property to identify any items that the insurance adjuster missed. These oversights are common and can include crucial details that affect the quality and cost of the restoration project.
Here’s a checklist of common items to look for:
- Code Upgrades: Check your local building codes for required upgrades, such as the use of an ice and water shield in specific areas or updated ventilation requirements.
- Detaching and Resetting Items: Remember to account for the labor involved in detaching and resetting items like solar panels, satellite dishes, or vents. These are often necessary to complete the restoration but are not always included in the initial estimate.
- Hidden Damage: Keep an eye out for hidden damage that may not be visible until the work begins. This often includes rotted roof decking, or structural issues uncovered after the old materials are removed.
- Labor Costs: Specialized or complex work requires specialized labor. Make sure to factor in labor costs for things like difficult-to-access areas or unique installation requirements.
Step 2: Documentation is Key
Once you’ve identified the items missing from the initial claim estimate, you must provide thorough documentation to support your supplement claim. Insurance companies require proof of the damage and a clear explanation of the scope of work necessary.
When taking photos for an insurance claim, be intentional. Capture a variety of shots to build a solid case. Here’s what you should include:
- The Big Picture: Take photos of the general area to provide context.
- Close-Ups: Get clear, detailed close-ups of the damage.
- Material Photos: Photograph the materials you plan to use for replacement and take photos of any unexpected materials you find, like extra layers of old roofing.
Carefully choose only the photos you need to support the specific line items within your claim. Remember, your pictures can mean the difference between a “yes” and a “no” from the insurance company.
Step 3: Creating the Detailed Estimate
A professional, line-by-line estimate is non-negotiable. This document is a critical tool for creating a paper trail, justifying costs, and preventing disputes. For best results, use Xactimate®, the same software used by most insurance companies. By speaking the same language as the insurance adjuster, you ensure you’re on the same page from the start. A detailed estimate created with Xactimate® will:
- Address Missed Items: Clearly list and justify the items the initial adjuster’s estimate did not cover.
- Provide Justification: Show a clear breakdown of costs for materials and labor.
- Increase Efficiency: Streamline the communication and approval process.
Step 4: The Negotiation
After you submit your supplement, be prepared for a negotiation. Rebuttals are common in the insurance industry, but a firm “no” can be turned into a “yes” with the right approach.
When communicating with the desk adjuster, be polite but firm. Your detailed documentation and photographic evidence will be your most powerful tools. Clearly and calmly walk the adjuster through your reasoning, referencing the photos and line items in your estimate. Your goal is to show them that your supplement is not a request for extra money, but a true reflection of the costs required to restore the property correctly.
By following the four steps in this guide to insurance claim supplements for contractors, you can significantly increase your success rate with supplement claims, ensuring you get paid fairly for your work and the homeowner’s property is restored to its full value.
Navigating insurance supplement claims can be time-consuming and frustrating, taking you away from what you do best – building. If you’re tired of the paperwork, Elevation Estimating can help! Our team of experts specializes in handling insurance supplement claims to you can focus on your customers and your projects. Want to learn more? Contact us today to see how we can help with your next project.
