Why Roofers Charge More when Working with your Insurance Company vs. Hard Bid

JUNE 25TH, 2020 UPDATED 2:00PM CT

When it comes to every roofing project, roofers will provide you with a hard bid. But if you ever have damage and work with an insurance company, you will find that roofers generally charge more. Many people are confused by this and don’t understand why it costs more when a roofer works with your insurance company over a hard bid. So today, we hope to clear up that confusion. But before we start, why don’t we take a look at how roofers generate a hard bid.

How Roofers Determine a Hard Bid

When it comes to roofing, different contractors will offer you different bids. Several factors go into deciding a bid. These include, but are not limited to:

  • The amount and type of damage the roof has incurred
  • The scope of the work
  • The size of the roof
  • The cost of materials needed to repair or replace the roof
  • Estimated costs for labor
  • Any overhead costs that need factoring in
  • How much profit roofing companies would like to make.

Once they consider these things, a roofer can determine how much they will charge for a job. The exact bid will depend on the roofer who is offering it. Some roofers charge more because they offer more experience, while other roofers will charge less in hopes of winning the bid.

Is it always a good idea to go with the lowest roofing bid?

While going with the lowest bid can save you money, it’s not always the best idea. It’s often less experienced contractors that will offer the lowest bids in hopes of obtaining a job. More experienced contractors or roofing companies with a more solid reputation generally charge more than newer companies.

This isn’t to say that newer contractors or companies can’t do a great job – they can, but you are taking a risk. Furthermore, you should be wary of lower bids. If a bid seems too good to be true, it could be because it is. In some areas, it’s not necessary to have licensing or insurance, and it will be contractors without these things that offer the lowest bids. By accepting a bid from a contractor that is not licensed or insured, you could be risking a shoddy roof job, which will lead to more repairs.

Always be sure to research a company or contractor before accepting a roofing bid.

Why are hard bids lower than working with an insurance company?

When it comes to roof repairs, you will find that any contractor working with an insurance company will charge more. This is normal, and you should not be shocked by the price difference. But why is there such a big gap in price? After all, the workload is the same – so why should the price be different?

Because the workload isn’t actually the same. Yes, in terms of manual labor on your roof, it is the same. Whether you are repairing roof shingles, metal roofing, or some other type of roofing, the amount of labor will be the same regardless of whether you are going through an insurance company or not.

But there is more work for the contractor when they have to go through an insurance company. It may not be manual labor, but it is time consuming administrative work. When a roofing contractor works on a job covered by insurance, they become the main point of contact between you and the insurance company. The roofing contractor will not only take on the job of repairing your roof but will also handle all negotiations between you and the insurance company. Your contractor will also deal with all of the paperwork that comes with an insurance claim.

Dealing with insurance companies can be time-consuming and can also be quite a headache for your contractor (if you have ever dealt with an insurance company, you will know exactly what we are talking about!). And this is why it always costs more to hire a roofing contractor through insurance than it does with a hard bid.

Why does your roofer need to see your insurance claim?

If you’re in the middle of filing an insurance claim for your roofing project, your roofing contractor may ask to see a copy. A lot of people are wary about showing contractors their insurance claims for fear that they will get ripped off. But the truth is, there are legitimate reasons for them to request to see your claim. Here’s why:

1. They need to read through and understand your claim.

Your roofing contractor must understand exactly what is and isn’t covered by your insurance policy, and the only way to do so is to read through it thoroughly. Policies can be extremely specific, and your roofer needs to feel confident that the pricing matches the requests laid out in the claim.

Furthermore, they need to make sure that they can meet the requirements set out by your insurance policy. For example, some insurance policies set a limitation on the amount of time that your repairs must be completed. Completing a project in the given time frame may require extra manpower, which they will factor into the cost of repairs.

In some cases, your insurance policy may only cover certain materials or a certain portion of the repairs. In such a case, your roofing contractor must have the opportunity to discuss this with you so that you can make informed decisions moving forward.

2. They want to avoid insurance fraud

Some roofing contractors will make promises to pay your deductibles or subtract the deductible from your roofing repairs. But in order to do this, roofers increase the price of your repair bill and charge the insurance company more. This is called insurance fraud.

It is not legal for companies or contractors to pay your deductible. Doing so can result in severe legal fines and penalties.

For this reason, roofing contractors need to read over your insurance policy. They need to make sure that they are billing the insurance company the correct amount so that they do not get accused of fraud.

3. They need to make sure their information matches the information on the claim

If the invoice submitted by the contractor is not an exact match to the amounts listed on your claim, the insurance company will create a fuss. Insurance companies will do anything they can to avoid payment, and if invoices don’t match line for line, they will use this as an excuse to prolong the payment process. When this happens, it can take weeks or months of the contractor’s time arguing with the insurance company to pay the homeowner.

4) They want to make sure the claim matches the work

When an insurance adjuster makes a claim, they work off of a standardized template. The problem is, not all roofing is standardized. Rather, all roofing is different, and no two roofs will be the same. And unfortunately, insurance adjusters don’t always understand this concept. Why? Because they don’t fix roofs for a living. For this reason, your contractor will want to make sure that the claim covers everything that it needs to and that nothing is left out. This will help ensure that you receive the amount of payment you are entitled to and nothing less.

In conclusion, don’t be shocked if your estimate goes up when you are working with insurance companies. The increase in cost is related to the additional work that your San Antonio roofing contractor must do. Be wary if you find a contractor who doesn’t raise their price when working with insurance companies.

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