Sometimes the insurance company accepts that a covered loss occurred but pays far less than the repairs actually cost.
The difference may come from missing damage, reduced measurements, low pricing, depreciation, omitted code requirements, or a repair scope that does not reflect what is actually needed to restore the property.
A partial payment can feel like the insurance company has made its final decision. Often, it has not.
We review the insurance company’s estimate line by line and compare it with the damage, the policy, and the real cost of the work. That means looking at scope, measurements, quantities, labor and material pricing, depreciation, overhead and profit, and any other items that affect the amount of the claim.
The goal is straightforward: determine what the insurance company paid for, what it left out, and whether additional insurance benefits may be owed.
Where Underpayments Happen
Missing scope. Damage may be left out of the estimate entirely. That could include additional roof areas, interior water damage, exterior structures, flooring, cabinetry, fencing, or other affected portions of the property.
Measurements and pricing. Small differences in measurements, labor rates, material pricing, or quantities can add up quickly on a large repair.
Depreciation. Depreciation can significantly reduce an initial payment. We review how it was calculated, what items it was applied to, and whether additional amounts may become payable as repairs are completed.
Code requirements and matching. The insurance company may estimate for a limited repair when applicable building requirements, policy provisions, or state law may affect the actual scope of work.
Overhead and profit. Claims involving multiple trades may require coordination by a general contractor. Whether overhead and profit should be included depends on the nature and complexity of the work and the circumstances of the claim.
How We Review an Underpaid Claim
We begin by comparing the insurance company’s estimate with the available evidence of the damage and the cost of repair.
That may include contractor estimates, photographs, measurements, invoices, engineering reports, inspection records, and other documentation related to the loss.
We look for differences in both scope and price. Sometimes the dispute comes down to a few missing line items. In other claims, the insurance company and the contractor are estimating two very different repairs.
If additional documentation is needed, we work with the appropriate professionals to develop the claim and present the insurance company with a supported request for additional payment.
Depending on the policy and the nature of the dispute, the next step may involve a supplemental claim, further negotiation, appraisal, mediation, or litigation.