In our claims process guide, we spent some time discussing how insurance adjusters generate estimates for property damage. Today, we’re going to dig a bit deeper into the process, so curious homeowners know exactly what to expect when they file a claim.
How Do Adjusters and Contractors Evaluate Damage?
The industry standard program in the insurance and construction industries is called Xactimate – and it’s the standard for a reason. This program provides accurate and standardized cost estimates for property damage based on an extensive database of local labor and material costs. In other words, estimates aren’t just “gut feelings.” If there’s a discrepancy, for instance, between a contractor’s estimate and an adjuster’s, it’s because one party added or removed an item on Xactimate that the other didn’t.
Because Xactimate maintains a constantly updated database of prices, which will be the same for the contractor and adjuster, the program effectively standardizes the estimate process. This is particularly important in a state like Texas, where regional differences in labor and material costs can significantly impact the final estimate for roofing repairs. It’s this reliability and transparency that explains why so many contractors and insurance carriers rely on the program.
However, there are other ways to estimate damage. For instance, a service called Roof Marketplace has become a possible alternative. RoofMarketplace sends its own adjuster out to document your property damage with images and descriptions and then lets three contractors on their service send bids to the homeowner for repairs. This empowers the homeowner to choose which contractor is best for them, after which Roof Marketplace quotes the homeowner’s carrier for approval.
How Do Adjusters Use Xactimate?
Once you file a claim, your carrier will send an adjuster to your property to investigate the damage. You’ll see them walk around the sides of your house, plugging in any damage they see, including fencing, patio furniture, windows, gutters, and just about any type of property included in your policy.
After that, they’ll move on to the roof. Adjusters are trained to conduct close inspections of roof damage, which includes gearing up and climbing onto often dangerous, unstable, and steep surfaces. They do this to spot damage that cannot be seen from the ground. Meanwhile, you’ll probably see them plugging information into a program – more often than not, that’s Xactimate. Once the adjuster is done assessing the damage information, the software will calculate the cost based on your zip code’s labor and material costs.
As a side note, this is the stage where things can go wrong. As the Texas Department of Insurance (TDI) states, the frequent storms and underregulated roofing market in the state have led to a lot of fraudulent activities, such as unlicensed contractors preying on anxious homeowners to overcharge their insurance.
What Happens If Contractors and Adjusters Disagree?
Typically, adjusters create comprehensive and honest estimates, and contractors complete the repairs without any major surprises. But, as mentioned earlier, if there’s a discrepancy between a contractor’s estimate and an adjuster’s, Xactimate will let us see exactly where the discrepancy occurred. After all, since labor and material prices are standardized, any difference in estimate indicates one party added or removed an item that the other didn’t.
When these discrepancies occur, both parties can use the software to adjust their calculations by entering additional details or revising the scope of work. Or, if your contractor may find damage during the repair that wasn’t included in the original estimate, in which case they can submit a “supplement” to request additional funds from your carrier.
If you’re working with a reputable adjuster and contractor, there won’t be any problem. But in some cases, if a resolution cannot be reached, the dispute may escalate to an appraisal or even legal proceedings. Even in that case, the structured and itemized report generated by Xactimate can provide a clear record of each party’s estimate and the rationale behind it.
We’re Here to Help
Want to learn more? You can read our comprehensive insurance guide and click through the links within to explore the full series.
DFW Roofers has served the Dallas-Fort Worth area for years. If you need a dependable partner and contractor throughout this process, our team would be happy to help. If you have any questions, contact DFW Roofers at (469) 751-4018 or schedule an appointment through our online appointment form.