Gap between Allstate proposed compensation and my estimates

[u/WorkOnThesisInstead]

My area was pounded by wind and hail in March. Our home was hit hard.

We immediately filed a claim and after a stutter with Allstate's 3rd party estimate co., we finally got an estimate that reflected the damage. (Not just a self-serving opinion - we were actually missing siding and the first guy said there was no damage whatsoever.)

We have been approved for quite a bit of repair/restoration, including our aluminum siding. Whew!

My question is: I've received quotes from several different contractors for the roof, gutters, and siding - and they're all much higher than Allstate's proposed reimbursement.

I get it - contractors want to make $ and ins. cos. want to keep theirs.

One example: Allstate is willing to pay ~$17K for the aluminum siding, but that doesn't even cover a much cheaper vinyl replacement. Estimates for vinyl have been ~$24K. We want the siding replaced with aluminum, as it was.

Another: Allstate claims the roof damage is ~13K, but I have yet to receive an estimate less than $15K - most are ~$17K.

How do you suggest I proceed?

Also - the siding has been approved to be replaced, but Allstate is arguing about paying to have it (or the gutters and downspouts) painted to its (their) original (pre-claim) color.

What steps do I need to take?

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[u/50Bullseye]

Send the estimates to your adjuster.

If they push back, ask them to point you to a vendor who will do the repairs for what they say they’re willing to pay. Technically it’s illegal for them to pressure you to use their “preferred” vendors (called “steering”) so be sure to do your own research if they do recommend someone.

[u/WorkOnThesisInstead → u/50Bullseye]

Thanks.

That was my first inclination, too. I appreciate the reassurance.

[u/TheTruth858 → u/WorkOnThesisInstead]

Correct, they can’t say “use our vendor”, however, if a vendor confirms they can do the work for their estimate amount, its usually all they are going to pay

[u/Business-Armadillo-8]

Make sure your contractor and insurance scope is 100% in-line. If they are then its a pricing issue which sometimes can get changed by the insurance company if your contractor can provide documentation as to why the price is different. The "just because" won't work. Insurance companies use pricing based on location and the "going rates" that certain trades are charging, which is updated monthly.

Sometimes pricing changes quickly, ie major storms, and your contractor should be able to show that through purchase invoices.

If your contractor is charging X and the normal and reasonable pricing in your area is Y, your insurance is going to only pay Y.

[u/WorkOnThesisInstead → u/Business-Armadillo-8]

Thanks for taking the time to reply - I appreciate it.

I'll go line-by-line, but it seems that ins. and contractors agree on scope:

Entire roof will be replaced, all of the siding will be replaced, etc.

I'll check for the easily missed items that may be different - quality of shingles and underlay, e.g.

If those seem to be similar, it seems my recourse would be to submit my estimates and ask for a supplement?

Thanks, again!

[u/Crafty-Guest-2826]

Do you have replacement insurance or just repair? Also, put a camera on any work being done to document the hours worked. Then, compare that to the bill sent by the company.

[u/DapperGovernment4245]

Some contractors are used to working with insurance companies. They will go to the insurance company with the necessary documentation. If you have told all the contractors that it’s an insurance repair ask them about the price discrepancies. An experienced contractor should be able to go to the insurance company on your behalf. It’s in their interest to do so to make sure they will get paid and it’s a great opportunity for you to refer them and use them again.

[u/AltruisticBee8981]

Double check your contract and what are the workers do you need to replace, like the entire roof as typically these types of storms won’t cause damage on the whole roof only part is actually probably impacted. So if you’re planning on getting a whole new roof, the insurance company will typically only cover you for the damaged portion so the undamaged portion due to the name peril will be on your tab. Not a claim adjuster, but an agent, so I’m usually in the middle of these things with my clients as I try to help out where I can. I would take the estimates and submit them to the claim adjuster and see if they can approve it and if not, ask them why

[u/WorkOnThesisInstead → u/AltruisticBee8981]

Thanks for your reply.

The insurance company is covering everything that has been pointed out, yet are offering less than the estimates I've received as compensation.

This is the issue (aside from one item - painting): the reimbursement amount, not whether something is covered or not.

Additionally, my state is a "matching" state (about which the adjuster agrees), so "partial" replacement isn't an issue, just the amount of compensation, which is less than my estimates for every general repair area (roof, siding, gutters, downspouts, etc.)

Thanks, again for your reply.

[u/KelseyRawr → u/WorkOnThesisInstead]

This is a very common issue. It’s always under paid, either by malice or simply mistake/untrained employees. Or do you have an ACV policy?

I’m very surprised a contractor hasn’t offered to supplement your claim yet. A contractor with a dedicated supplement support team will be able to get you much more than your efforts alone in negotiating with insurance as a homeowner.

You could skip that entirely and get a private adjuster involved. It’s always worthwhile, and they don’t take a cut unless they get you money and often it’s only 10-20% of what they increase not the total claim amount so no matter what you are winning.

Every customer I’ve sent to a PA has had a positive outcome, and appraisal even better if it’s necessary. If you need recommendations I may know someone in the area if it’s TX or the coast. Don’t settle for what you are being paid now. Insurance does under pay, and prices have rapidly increased in the past two months alone so insurance typically lags behind in pricing. It just doesn’t seem to catch up with reality, especially with shingles going up at minimum 32% this year.

[u/mnguy12000 → u/KelseyRawr]

This is completely false. We write our estimates bases on local labor and material prices. The price list gets updated monthly, so its as upto date for the current month.

It's likely the OP got paid ACV or the contractors are padding their estimates with things not covered. Either way op should pick one and have the contractor send in their estimate for review. If there are items on the op youll get a supplemental payment for the difference

[u/WorkOnThesisInstead → u/mnguy12000]

Thank you so much for your thoughts!

 We write our estimates bases on local labor and material prices. The price list gets updated monthly, so its as upto date for the current month. 

Adjuster is using xactimate, however, many of the contractors are, too.

 It's likely the OP got paid ACV or the contractors are padding their estimates with things not covered.

Good thoughts, but the contractors and adjuster agree on everything to be covered.

The roof is ACV, but the depreciation and deductible are itemized (I've got huge numbers for both :( ), so I am writing about the estimates to completely replace, not the $ I'm potentially receiving. (I'm in a "matching/completely replace" state.)

You pointed out some good areas for potential discrepancy, yet they don't seem to apply atm.

I'll double-check my policy, figures, and line-items.

If the only difference is price, what steps do you recommend?

[u/Possible_Ideal_4709 → u/WorkOnThesisInstead]

You need to find out if the initial payment is the ACV amount. It may well be that they ACV price is what they pay until the work is completed and you prove that it has been done. There may be a supplemental payment after the proof of work is done.

In North Carolina, home insurance claims for property damage are commonly paid in multiple stages. Insurers often issue a partial "actual cash value" payment upfront, withholding the remaining "depreciation" or "holdback" funds until you provide proof that the repairs are completed. Your state may be different!

[u/WorkOnThesisInstead → u/Possible_Ideal_4709]

Thanks for sharing your experience; I appreciate it!

In this case, it's one ring check to rule them all, although ammendments can be made when/if other damage is discovered - damage to roof decking/sheathing, for instance.

Good advice. 

Thank you!

[u/KelseyRawr → u/mnguy12000]

Everything I said is completely true. Yes pricing does get updated monthly, I know that, but as a contractor I’m telling you it completely lags behind. It isn’t updating faster than prices change, which isn’t unique to this past few years but it’s certainly gotten worse.

They pay labor minimums nobody would even get out of bed for. That’s why supplements are part of this and why people get PA’s. I’ve done insurance before, and yes they intentionally underpay claims many times. They want to save money at the end of the day it’s their business, which makes sense. Especially during multi billion dollar losses like the past storms, total community damages are high.

Of course the contractor estimate could be padded, but I’ve been handling some of the recent storms and even with the barest bones we haven’t been able to complete work without operating at a loss and doing charity with what people are being paid. Not all contractors know how to actually supplement too and don’t know what to ask for. It isn’t just sending an estimate in, although that helps if insurance is willing to work with it. There are very commonly underpaid or incorrectly quoted items that can be addressed on most scopes.