5 Types of Estimates For Restoration Contractors

Every day our clients, restoration contractors, ask us to create estimates. Of course, we know that general contractors need estimates to provide to insurance companies of their customers -- homeowners and commercial property owners. 

However, there is more than one type of estimate that the contractor may need, depending on the situation. To understand what kind of estimate the client is looking for I always ask them to describe the situation and how the estimate is going to be used.

Contractors often have this dilemma. They see repairs to their customer’s property that need to be made, but some of the damages are missing from the insurance company’s list of approved items. There is not a one-size-fits-all solution to insurance discrepancies. Rather, there are multiple ways to address insurance claim concerns that come up frequently for general contractors and roofing companies.

There are 5 types of estimates that we routinely make for our clients. All of these estimates address repairs needed for storm-related damages to residential or commercial properties. Let’s dive in and take a closer look at each type of estimate that Claim Supplement Pro (CSP) creates for our clients:​

1. Re-Inspection Estimate:

• Situation: When the insurance didn't approve a significant portion of damaged items and the client strongly feels that a re-inspection is necessary.
• Estimate purpose: To get insurance to approve the re-inspection.
• Required items: To increase chances of re-inspection approval, it's helpful to have very clear photos of the damages. Here are a few examples of specific information that gets the re-inspections approved:
  • If the roof is damaged: the 10 ft square test that includes counts of damaged shingles and an indication of the slope
  • If the siding is damaged: pictures of damaged siding marked by chalk with indication of the elevation
• What to expect on a CSP Re-inspection Estimate: CSP will write an estimate that will increase the chances of re-inspection approval. We focus only on specific items you would like to get approved during the re-inspection. 

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2. Appraisal Estimate:

• Situation: When the homeowner decides to go for an appraisal to get their damages approved. This is usually after initial inspection and re-inspection failed to get the needed repairs approved.
• Estimate purpose: The estimate will be used by the appraiser to submit to the insurance and get a fair payment for the storm damages.
• Required items: Pictures of all the damages, measurements, quotes, and any other documents related to the necessary repairs.
• What to expect on a CSP Appraisal Estimate: A full blown estimate with all the bells and whistles, including general contractor overhead and profit!

​​3. Retail Estimate:

• Situation: A retail job with no insurance involved.
• Estimate purpose: To give a property owner an idea how much repairs would cost if it was involving insurance. It’s usually used by the restoration contractor as a starting point in negotiations.
• Required items: Measurements and pictures of areas that require repairs.
• What to expect on a CSP Retail Estimate: We create an estimate with all of the necessary items to complete the job.

​4. Honest Estimate:

• Situation: When the insurance adjuster is asking for the general contractor's estimate stating that the project is approved and that they only need to see the roofer's estimate.
• Estimate purpose: To provide insurance with an idea of how much it would cost to complete the repairs.
• Required items: Property measurements
• What to expect on a CSP Honest Estimate: In these cases we always recommend the General Contractor to create a simple estimate that they usually use in retail jobs. We recommend asking for the top $$$ amount that they would like to receive from the insurance. The idea here is that the General Contractor is not an office of Xactimate professionals. He/she is just a General Contractor and when an insurance is asking for an estimate, they just need to take their retail quotation template and create a quote on the spot for the insurance. This one follows the time tested principle … keep it simple.

​5. Supplemental Estimate:

• Situation: The general contractor signed an agreement with the homeowner, and before starting the job, is making sure that the insurance is paying for all the items necessary to finish the job.
• Estimate purpose: To initiate a conversation with the insurance on all of the supplemental items that need to be addressed.
• Required items: Pictures of damages not approved on the insurance adjusters original scope of loss, pictures of all of the areas needing repairs, property measurements, and any quotes or invoices to finish the repairs needed.
• What to expect on a CSP Supplemental Estimate: Our estimate includes all the items that need to be modified or added. This estimate will usually have a lot of notes and pictures to support the supplemental items.

​Once I have identified the situation and purpose of an estimate, it's fairly easy for me to recommend the best type of estimate that would most help my clients.

Are there other types of estimates that you have come across? Please leave comments below so we can go over them together.

Do you have storm damage insurance claims causing you headaches?  Contact Claim Supplement Pro today! Our friendly team of experts would love to help you find the missing insurance dollars that you need to get the job done. We’ll help you be a hero to your customers!