Updated: Jul 13, 2021
You’re doing a ton of work taking care of your customers and their homes after their roofs have been damaged. Then you realize the actual costs of your work and materials don’t match what the insurance company is going to pay for.
This is where insurance claim supplements come in.
In this article, we will discuss:
what an insurance claim supplement is
why supplementing is so important to roofers and contractors
two key factors for submitting a claim supplement
What is an Insurance Claim Supplement in Roofing?
An insurance claim supplement for roofers and general contractors is a claim for extra repair or replacement expenses needing to be added to a claim for items:
or discovered after work began
No one is perfect - an insurance adjusters’ initial estimate is exactly that - an estimate.
During the damage inspection, they miss things; the impact of damages can be greater than they originally appeared.
The process of returning a home back to its previous state can require more time and materials than originally expected and that time and material is not free of cost.
Why are Insurance Claim Supplements Important for Roofers and General Contractors?
The process of supplementing exists for roofers and contractors to receive the fair compensation they deserve for the work and materials provided.
In other words, it's how you receive the difference between actual costs and the estimate the insurance adjuster initially provided.
But it is not only about the revenue your business needs, it is also about ensuring the homeowner is properly taken care of.
The best roofers out there serve their clients as someone who can guide them through the entire repair process to restore the home back to its original condition.
Additional Revenue from Supplementing
Roofers and general contractors shouldn’t be eating the extra costs which arise after an original estimate from an insurance adjuster. It is NOT a “cost of doing business.”
Those are real costs the insurance company is supposed to pay!
When contractors consistently accept first estimates as final and finish the work no matter the actual cost, they are cutting into their profit margin and may just be breaking even (or even losing money).
This is a recipe for disaster in the construction industry.
At the very least every insurance claim should cover the cost of materials and labor and, in many cases, they should cover overhead and profit as well. In our experience, it is quite common for supplements to add 10% - 30% to the total of a roofing project.
This is vital revenue your business needs.
Taking Care of the Homeowner
What alternatives do roofers actually have for covering actual costs during an insurance job when the original estimate won’t cover it?
They're left with just two options:
cut corners, or
Every roofer we work with cares deeply for the families and communities they serve. This passion translates into quality home and roofing repair.
Serving people is the priority.
In order to be successful in business and have longevity, you need to be profitable. So when an insurance carrier isn’t covering the real costs, there is really only one good option - a supplement.
One client we work with was absorbing the cost of a critical step the insurance adjuster was never including in the initial estimate. It was an item which was totally necessary for properly caring for the homeowner’s property.
Going to bat for this item changed the game for this particular roofer and increased their per job profit margin.
It may not seem like a big deal on one or two jobs, but will add up over time.
Conversely, when you’re doing a large volume of insurance claim work, the cost of absorbing seemingly small items will also add up fast.
You should absolutely do the right thing to take care of the homeowner, and you should absolutely get it paid for by the insurance company who collects premiums every month for this very purpose.
Filing a Roofing Insurance Claim Supplement
One of the biggest mistakes roofers make in submitting supplement claims is expecting the insurance carrier to play by roofing company rules.
It is always better to work with them rather than against them, and this takes expertise building the right case.
It is very important to document everything with proper codes and take excellent photos.
Insurance companies all have very particular processes and procedures for handling claims and supplementing. Knowing how insurance carriers approach each claim will lead to greater supplement success.
One of the most important factors is documentation.
If you want an insurance company to trust your supplement claim, you have to document the details the way the insurance company expects the documentation.
How the details are documented is one of the most pivotal steps for supplement approval.
There are three main documents we focus on:
Well written Xactimate estimate, and
We specifically focus on these three because they are also the items the insurance carriers focus on to measure the true damage.
Photos for Roofing Insurance Claims
Knowing how to take photos for an insurance claim is the most crucial part of the process. It isn’t enough to take great looking photos.
They have to be the RIGHT photos.
There’s a saying in the industry which goes something like this:
If there isn’t a photo for it, then the damage doesn’t exist.
When it comes to getting approval for a supplement and getting it within a reasonable amount of time, this saying is absolutely true.
Working With A Supplement Team
There are a lot of companies out there who do claims and supplements administration. But we will bring the expertise you deserve.
Here's how you know we're the experts:
We have experience in the insurance process.
We know insurance carrier guidelines.
Our supplement approval rating exceeds the standard.
Our average turnaround time is unheard of.
We care about you, your business, and the families you serve.
We know your supplement goals.
We don't just want your business - we want to be your teammate.
At MAX4, we are supplement specialists who pride ourselves on having first-hand, “inside” experience and knowledge of everything which happens on the insurance side of the industry.
Let us help you today.