Insurance Estimate Review

Q: What if the adjuster says their pricing is based on industry standards?

Challenge this with actual contractor quotes. 'Industry standards' often means proprietary databases that don't reflect real market rates.

Why Estimate Review Is Critical

Insurance adjuster estimates are almost always lower than contractor quotes. Understanding why and how to challenge these estimates can increase your settlement by thousands or tens of thousands of dollars.

Below-Market Pricing

Insurance companies use proprietary software and pricing databases that don't reflect actual market rates. These databases are calibrated to produce low estimates. Adjusters input damage information, and the software generates prices that are often 20-40% below what contractors actually charge.

Missing Scope Items

Adjusters often miss damage items entirely. They may not see hidden damage, may not understand all the repairs required, or may deliberately exclude items hoping you won't notice. Every missing line item costs you money.

Improper Depreciation

Depreciation calculations are often aggressive and sometimes incorrect. Adjusters may apply depreciation to items that shouldn't be depreciated or use depreciation schedules that exceed industry standards.

Quantity Errors

Adjusters sometimes underestimate quantities—square footage, linear feet, or number of items. These errors compound across the entire estimate.

What to Review in Estimates

Line Item Pricing

Compare each line item price against contractor quotes and market rates

Scope Completeness

Verify all damaged items and necessary repairs are included

Quantities

Check measurements and counts for accuracy

Depreciation

Verify depreciation is applied correctly and reasonably

Labor Rates

Ensure labor rates reflect actual market rates in your area

Material Specifications

Verify materials match "like kind and quality" requirements

How to Review Insurance Estimates

Systematic estimate review identifies undervaluation and provides documentation for negotiation.

Get Contractor Estimates First — Obtain at least two detailed contractor estimates before reviewing the adjuster's estimate
Compare Line by Line — Create a spreadsheet comparing each line item across all estimates
Identify Missing Items — List every repair item in contractor estimates that's missing from the adjuster's estimate
Check Unit Prices — Compare prices for materials and labor against contractor quotes
Verify Quantities — Measure yourself or have contractors verify square footage and quantities
Review Depreciation — Calculate whether depreciation percentages are reasonable
Check for Hidden Damage — Ensure the estimate includes damage that wasn't immediately visible
Document Discrepancies — Create a detailed list of every undervalued or missing item
Calculate the Gap — Total the difference between the adjuster's estimate and fair market value
Prepare Your Counter — Use your analysis to support a detailed counter-offer

Frequently Asked Questions

How much lower are adjuster estimates typically?

Adjuster estimates are commonly 20-40% lower than contractor quotes. The gap varies by damage type and insurance company, but significant undervaluation is the norm.

Can I negotiate every line item?

Yes. Every line item is negotiable. Focus on the largest discrepancies first, but don't ignore smaller items—they add up.

What if the adjuster says their pricing is based on industry standards?

Challenge this with actual contractor quotes. "Industry standards" often means proprietary databases that don't reflect real market rates.

Do I need to be a construction expert to review estimates?

No. You need contractor estimates for comparison and basic understanding of what's included. Claim Command Pro provides guidance on what to look for.

What if I've already accepted the estimate?

If you haven't signed a release, you may be able to reopen negotiations or file a supplemental claim for items that were missed.