You might think that insurance companies simply base property damage settlements off the cost a contractor charges for the repairs, but this is not the case the vast majority of the time.
Instead, your adjuster is most likely going to utilize one of a couple of estimating software that attempt to price the labor and materials at an average for your area. There are a lot of reasons why that is a flawed endeavor to begin with, which we’ll talk about in a future post, but for now, just know that these software are known to be pretty inaccurate.
Your insurance policy most likely covers the cost of restoring your covered property to its undamaged or pre-loss condition. These estimating software are not mentioned anywhere in your policy, and you are in no way obligated to accept a settlement based on their pricing.
Under most circumstances, you have every right to advocate for the full cost of actually repairing your home, so we encourage you to find a contractor that is capable and willing to explain their costs in detail. If you can give an explanation for the labor and material price, then you are in a good position to advocate for a full and fair settlement.
If you want expert help preparing reports to bridge any gaps between your insurance settlement and the actual costs, then give Tugboat a try and chart a course to a better settlement.