What if the insurance payout is lower than your estimate?

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

Denise Watkins

Insurance adjuster who handles storm damage claims

Listen

1. AProvide a detailed scope comparison showing why your estimate is higher. The homeowner can request a re-inspection or hire a public adjuster. Don't compromise your scope to match an undervalued claim
   Correct

   Insurance adjusters work for the insurance company, not the homeowner. Their estimates often exclude items, use lower labor rates, or underestimate material costs. Your detailed scope comparison gives the homeowner ammunition to challenge the adjustment. Options: request re-inspection, hire a public adjuster, or negotiate directly. Never reduce your scope to match an undervalued claim — cutting corners to fit insurance money creates liability.

2. BDo the job for $8,200 — match the insurance estimate to win the work
   Risky

   If $8,200 doesn't cover proper repairs, you'll either lose money or cut scope. Cutting scope means the damage isn't fully repaired, which becomes your warranty problem. If you agree to a reduced scope in writing, make sure the contract clearly states what IS and ISN'T included. The homeowner needs to understand they're accepting a partial repair if the insurance doesn't cover the full restoration.