3 Reasons You Shouldn't Get Multiple Bids On A Roof Insurance Claim

Are you dealing with a roof insurance claim and considering the traditional route of "getting 3 bids" for the repair?

Think again.

While it might seem like a prudent step to compare prices and ensure you're getting the best deal, this common practice might not be as beneficial as it appears.

In this article, we'll unravel the misconceptions surrounding the process of getting multiple bids for a storm-damaged roof. We'll explain why this approach not only won't save you money, but may actually result in a subpar roof replacement. 

Let's dive in.

1. It Doesn’t Save You Any Money

On the face of it, getting 3 bids just seems like basic due diligence. After all, you need to compare prices right? 

The short answer is: Unless you have an ACV policy, you actually don't need to compare prices. 

With an Actual Cash Value policy(ACV, your insurance company will pay for the replacement cost of your roof minus depreciation. In this case, you could be on the hook for a substantial amount of the final bill.

But if you have an RCV (replacement cost value) insurance policy (which is by far the most common kind), then your insurance company is obligated to pay for the replacement cost of your roof in its entirety, with like and kind materials.

All you are responsible for is your deductible, which stays the same no matter what the total cost of the roof is. 

Moreover, the replacement cost of your roof is determined by industry standards; it’s not left simply to your contractor’s or insurance company’s judgment. The most commonly used tool to determine these costs is a software called Xactimate. Xactimate provides pricing data for specific geographic regions and produces detailed, line-by-line estimates that cover everything from labor and materials to overhead and profit. 

So why would your insurance company want you to get 3 bids? The simple answer: to lower their own costs. Not infrequently, they’ll find a contractor who is willing to build a scope of work that is less expensive than the scope created by a software like Xactimate. In this case, not only are you not benefiting financially from the lower bid…you are getting a subpar roof replacement, which means less bang for your buck, not more.

2. You Can’t Pocket Any of the Insurance Money

Now you might be asking yourself, “But if I hire a contractor that will do the work for less than the insurance estimate, can’t I keep the difference?” 

Unfortunately, the answer to this question is also no. This is actually insurance fraud.

In other kinds of insurance, the insurer simply hands you a check for the estimated costs and you can keep anything that’s left over. But when it comes to roof replacements, your insurance company pays only the amount on your roofing contractor’s final invoice. 

So, in order to “pocket the difference”, your roofing company would have to create two invoices: the real one, which they give to you; and a fraudulent one, which they give to the insurance company.

3. Contractor Advocacy Is the Most Important Part of an Insurance Claim

In an insurance claim, the most important part of selecting a contractor is not their price, it’s their ability to advocate for you.

Unfortunately, your insurance company isn’t always there for you. In fact, the claims process is often an adversarial one, with your insurer attempting to reduce a full replacement to a partial repair, skimp on the scope of work, lower the price, or even deny your claim altogether. 

Unless you have both the expertise and the time to advocate for yourself, you need an honest, knowledgeable contractor to help you negotiate your claim and ensure you get the payout you deserve. 

A good contractor will be intimately familiar with the process of filing a claim and will take the time to walk you through it, meet with the adjuster and make sure that all of storm damage is taken into account, and ensure that your claim payout adheres to industry standards.

The Upshot

So, when dealing with a storm-damaged roof, the focus on getting bids is not only unhelpful, it's counterproductive, moving your focus away from the quality and scope of the replacement to helping the insurance company lower their own price. The key is to focus on working with a knowledgeable, trustworthy roofing company. 

If you're dealing with an insurance claim right now, feel free to reach out to us for a free call. Our nationally-recognized roofing experts have have helped commercial building owners settle 10s of millions of dollar worth of insurance claims, and can provide you with customized advice.