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Multiple roof bids should not be obtained to settle an insurance claim. Commonly, with a typical roof replacement (residential or commercial), your insurance company may ask you to have a few contractors give you bids. Although, when it comes to storm restoration, getting multiple bids can actually HURT the value of your home. This practice only benefits your insurance provider. Read on and I'll explain why!  Allow Me To ExplainAs your roof ages or after a storm, your main goal is going to be to restore your home or business back to pre-storm conditions via compensation from your insurance company. Your insurance company has to pay you their summary amount OR your contractors roof bids, whichever is lower. The deductible will be taken out of this amount. You are legally obligated to pay your deductible either way, whether you pick your roofing company or you get bids and the insurance company picks from them for you. Insurance companies aren't necessarily attempting to cheat you out of the compensation that you deserve (and have been paying them for) - they just don’t want to pay any more than they have to. Getting multiple roof bids allows them to choose the cheapest option for you so they can pay you less. However, the cheapest option is often that way for a reason. Cutting corners, re-using material, or using cheaper products doesn't restore your property back to pre-storm conditions, which is what you've been paying your insurance for. Analogy To ClarifySay that I offered to take you out and pay for dinner. If I wanted to save money on the meal, I could ask you to provide me with three options and I would choose the least expensive one. The quality of food at the least expensive restaurant might be poor compared to the other two, but I would save money and you would still get a full stomach. However, let’s say you chose the restaurant and made reservations there. As a result, I would be obligated to pay for the meal (even if it may be more expensive) because I had made the commitment to pay for it. In this analogy, you are better off selecting the restaurant you want to eat at rather than giving me the option to choose the least expensive option for you. Show Me The Numbers$7,221 AVERAGE BID $7,221 is the average bid given for roof replacement. Many contractors will give a bid that is lower than the real cost to replace the roof so they can gain your business. This inevitably results in cut corners so they can still make a profit. VS $8,787AVERAGE INSURANCE CLAIM $8787 is the average claim paid out by insurance providers. This is a more realistic cost to replace the roof. With this amount of money granted to the contractor they can install the proper materials, thereby increasing the value of your home. The takeaway is this: Estimates are typically lower than the insurance scope of loss.
By accepting a bid, your insurance may not pay for any additional damage found during the repair.Lastly, when the insurance company accepts a bid to replace your roof, you will only get that amount, minus your deductible. More damage is usually found with storm damage. Your insurance company will say that they agreed to the original bid from the roofer. This releases them from being responsible for anything the roofer failed to find when putting together the bid. However, when you hire a company that agrees to work for the scope of loss, they will file for a supplement. A supplement is the cost to repair any additional damage found. Your insurance company will be more likely to approve and pay for supplements for things like gutter, screen, even fence repair/replacement. Interested to learn more? Give us a call and ask us any questions you may have! |
AuthorCourtney Hanson ArchivesCategories |
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