Should Your Roofer Work Off the Insurance Estimate or Write Their Own?

Here is the question: “Insurance already sent me an estimate. Do I still need one from you?”

We hear it on most insurance jobs. Homeowners often feel like a roofer’s estimate is a required step, even when no one has asked for it. Sometimes it is needed. Often it is not.

This guide explains both ways a roofer can contract an insurance job, how supplements fit in, and what to check before you sign. We are a roofing contractor, so we have a stake in this. We would still rather you understand the paperwork than feel rushed through it.

Why do homeowners get asked for a contractor estimate?

There are four common reasons, and only two of them are real requirements.

• Your insurance company asked. Some companies want a contractor’s estimate or bid in the file. Not all do.
• Your mortgage company asked. If you have a mortgage, your lender is often named on the check. Many lenders want a signed contract or an estimate before they release the money. See why your mortgage company is on your insurance check.
• You want to see the roofer’s price. That is reasonable. You want to know if the roofer can do the job for what insurance approved.
• It feels like the next step. A neighbor or a forum said to get one. No one in your claim has actually asked.

If you are in the fourth group, call your adjuster and ask. One question settles it: “Do you need a contractor’s estimate for my claim?” Our guide on whether you need multiple roofing bids covers that conversation in more detail.

What does it mean to work off the insurance estimate?

It means the insurance estimate sets the price of the job. The roofer agrees to do the listed work for the amount your insurance company approves.

Under this approach, your cost is made up of three things:

• Your deductible
• Any non-recoverable depreciation listed on your estimate
• Any upgrades you choose that the estimate does not list

If those terms are new, start with how to read a roof insurance estimate.

The upside is simple. You are not carrying a gap between two different prices. The downside is that an insurance estimate lists what is being paid for, not how the roof will be built. It may not name the shingle line, the ventilation plan, or the warranty. That is why you still need a written scope from your roofer.

What does a separate contractor estimate mean?

It means the roofer sets their own price for the job, apart from what insurance approved. The insurance estimate becomes a reference, not the price.

This is the right tool in several cases:

• There is no claim, or the claim was not approved, and you are paying yourself.
• Your insurance company or your mortgage company asked for one.
• You want upgrades priced out, such as a heavier shingle or a metal roof.
• The repair is small and you are deciding whether to file at all.

Here is the risk to understand. If the contractor’s price is higher than what your insurance company approves, someone pays the difference. Under many contracts, that is you. Ask about it in writing before you sign.

How do the two approaches compare?

Neither approach is dishonest. They answer different questions. One tells you what the money is. The other tells you what a roofer would charge.

What paperwork does Homer Roofing use on an insurance job?

On an approved claim, we work off the insurance estimate. You get one of two documents from us, depending on the job:

• A scope of work bid. It lists the work and materials for your roof. This is also what we provide when an insurance company or a mortgage company asks for a contractor document.
• A contingency agreement. It states that you are responsible for your deductible and that the insurance proceeds go to the scope of work.

Both carry the notice Utah law requires. Any contract, estimate, or work order paid with insurance money must state that the homeowner is personally responsible for the deductible (Utah Code 13-50-303). A contractor cannot be paid until you sign that notice and it is delivered to your insurance company.

A word on contingency agreements, because they have a mixed reputation. The document itself is common. The problem is when one gets pushed at your front door before you have picked a roofer or even filed a claim. Read it. Take your time. Sign it only with a roofer you have chosen on purpose.

What is a supplement, and how does it work?

A supplement is a request to add an item that the insurance estimate does not list. It is the normal way an estimate gets updated after the first version.

Estimates miss things for ordinary reasons. An adjuster may spend a short time on a roof they have never seen. Some items cannot be seen until the old roof comes off.

A supplement has three parts:

1. What the estimate lists or does not list. For example, the estimate does not list drip edge.
2. Why the item applies. That may be a building code section, the shingle maker’s installation instructions, or photos of what was found.
3. The documentation. Photos, measurements, and the line item.

Who sends it depends on your insurance company. Some accept documentation straight from the contractor. Some want it to come from you. Ask your adjuster how they want it handled.

Your insurance company decides whether to approve it. No contractor can promise the result, and you should be careful with anyone who does.

What happens if an item is not approved?

If an item is not approved, it is not part of what the estimate pays. What happens next depends on the kind of item.

• Items required by building code. Whether these are paid depends on your policy. Ask your adjuster: “Does my policy include code upgrade coverage?” Some policies call it ordinance or law coverage.
• Items that are not required by code and are not like for like. These are upgrades. They are your choice and your cost.

A good roofer tells you about these items before the work starts, with a price, so you can decide. You should not find out on the final invoice.

What should you check before you sign anything?

Use this list with any roofer, including us.

• Is the price tied to the insurance estimate or to the roofer’s own estimate?
• If insurance approves less than the contract price, who pays the difference?
• Is the scope in writing? Look for the shingle line, underlayment, ventilation, flashing, and how damaged decking is priced.
• What warranty comes with the work, and who backs it? Ours is on our warranty page.
• Does the document include the Utah deductible notice?
• What happens if the claim is not approved, or you change your mind?
• Is the roofer licensed and insured in Utah?

For a deeper check on any roofer’s paperwork, try our roofing estimate integrity quiz.

Does Homer Roofing negotiate with your insurance company?

No. Negotiating or settling a claim for a policyholder is insurance adjusting, and Utah requires a license for it (Utah Code 31A-26-102 and 31A-26-201). We are roofers, not public adjusters.

Here is what we do. We inspect the roof and document what we find. We show up at the adjuster meeting. We provide photos, measurements, and documentation. We explain your paperwork so you know what you are looking at.

The claim itself stays between you and your insurance company. You can read more on our insurance claim assistance page.

Key Takeaways

• On an approved claim, many roofers work from the insurance estimate. So do we.
• You usually do not need a second priced estimate. You do need a written scope of work.
• A separate contractor estimate fits when there is no claim, or when your insurer or lender asks for one.
• If a contract is priced on the roofer’s own estimate, ask who pays any gap.
• A supplement adds an item that is not listed. Your insurance company decides.
• Upgrades that are not required by code are your choice and your cost.
• Any Utah contract paid with insurance money must include the deductible notice.

FAQ

Do I need a separate estimate from my roofer if insurance already sent one?

Usually not. On an approved claim, many roofers work from the insurance estimate, and the price is what your insurance company approves. You may still need a contractor document if your insurance company or your mortgage company asks for one. Either way, get the scope of work in writing.

What is a roofing supplement on an insurance claim?

A supplement is a request to add an item that the insurance estimate does not list. It is sent to your insurance company with documentation such as photos, measurements, and code references. Your insurance company decides whether to approve it, and no contractor can promise the result.

Who sends a supplement to the insurance company?

It depends on the insurance company. Some accept documentation straight from the contractor, and some want it to come from the policyholder. Ask your adjuster how they want it sent before the work starts.

What happens if my insurance company does not approve a supplement?

If a supplement is not approved, that item is not part of what the estimate pays. Whether code-required items are paid depends on your policy, so ask your adjuster about code upgrade coverage. Items that are not required by code and are not like for like are yours to choose and to pay for.

What is a contingency agreement with a roofer?

A contingency agreement says that if your insurance company approves the claim, that roofer does the work for the insurance proceeds plus your deductible. It can be a normal part of an insurance job with a roofer you chose. Read it before you sign, and do not sign one at the door under pressure.

Why does my mortgage company want a contractor estimate?

If you have a mortgage, your lender is often named on the insurance check. Many lenders ask for a signed contract or a contractor’s estimate before they release the money. Call the number your lender gives for insurance claims and ask what paperwork they need.

What if a contractor’s estimate is higher than the insurance estimate?

A gap between the two is common. Under a contract priced on the contractor’s own estimate, you may be responsible for any amount your insurance company does not approve. Ask the contractor in writing who pays the difference before you sign.

This article is general education. It is not legal advice and it does not review your insurance policy. Homer Roofing is a roofing contractor, not a public adjuster. Your insurance company and your policy decide what is paid.