Insurance Company Vs. A Hard Bid: Why Do Roofers Charge More?

Roofers will give you a firm quote for any roofing project. However, if you have damage and need to work with an insurance provider, you'll find that roofers charge more. Many individuals are perplexed by this and don't understand why a roofer working with your insurance company charges more than a hard bid. So we're hoping to clear things up today. But before we get started, let's look at how roofers come up with a hard bid.

How Do Roofers Calculate a Hard Bid?

Different roofing contractors will provide you with different bids. A bid is determined by some factors including, but are not limited to:

• The magnitude and nature of the roof's damage
• The project's scope
• The roof's dimensions
• The cost of materials for repairing or replacing the roof.
• Labor costs are estimated.
• Any overhead expenditures that must be considered

How much money do roofing firms want to make?

After considering these factors, roofers can determine how much they will charge for a project. The actual price will be determined by the roofer who makes the offer. Some roofers charge more because they have greater experience, while others charge less to win the job.

Is it always best to choose the lowest roofing bid?

While accepting the lowest bid can help you save money, it isn't always the greatest option. To get work, less experienced contractors frequently submit the lowest offers. Roofing firms with greater experience or a better reputation often charge more than newer companies.

This isn't to imply that newer contractors or companies can't perform a good job; they certainly can, but you're taking a chance. Furthermore, lesser bids should be avoided. If a bid appears too good to be true, it probably is. Having a license or insurance isn't required in some locations, and contractors that don't have these things will have the lowest prices. Accepting a quotation from an unlicensed or uninsured contractor could result in a substandard roof job requiring additional repairs.

Before accepting a roofing bid, do your homework on the firm or contractor.

Why are hard bids less expensive than working with an insurer?

Any contractor who works with an insurance company will charge you extra when it comes to roof repairs. This is normal, and the price discrepancy should not surprise you. But why is there such a large price difference? Why should the pricing be different when the burden is the same?

Because the workload is not equivalent, yes, it is the same in terms of manual effort on your roof. Whether you're replacing roof shingles, metal roofing, or another type of roofing, the labor costs will be the same whether you go through an insurance provider or not.

When a contractor has to go via an insurance company, there is extra work for them. It isn't manual labor, but it is an administrative job that takes time. When a roofing contractor works on an insurance-covered job, they become your primary point of contact with the insurance company. Not only will the roofing contractor fix your roof, but he or she will also manage any conversations with the insurance company. In addition, your contractor will handle all of the paperwork associated with an insurance claim.

Dealing with insurance companies is often time-consuming and frustrating for your contractor. Hiring a roofing contractor through insurance always costs more than hiring one through a hard bid.

Why is it necessary for your roofer to see your insurance claim?

Your roofing contractor may request a copy of your insurance claim if you're in the middle of submitting one for your roofing project. Many consumers are hesitant to show contractors their insurance claims for fear of being taken advantage of. However, there are valid grounds for them to request a review of your claim.

1. They must read your assertion and comprehend it.

Your roofing contractor needs to know exactly what isn't covered by your insurance policy. The only way to accomplish this is to read it properly. Policies might be very specific, and your roofer must be satisfied that the cost satisfies the claim's specifications.

They must also ensure that they can meet the conditions outlined in your insurance policy. Some insurance policies, for example, place a time limit on how quickly your repairs must be done. Completing a project within the specified time range may necessitate additional labor, which will be factored into the repair cost.

Your insurance policy may only cover certain materials or a portion of the repairs in some instances. In this circumstance, your roofing contractor should meet with you to discuss the situation so that you can make informed decisions moving forward.

2. They wish to protect themselves from insurance fraud.

Some roofing firms will pledge to pay your deductibles or deduct them from your roof repair costs. On the other hand, Roofers, to do so, raise the cost of your repair bill and charge the insurance company extra. This is referred to as insurance fraud.

Companies or contractors are not allowed to pay your deductible. This can lead to serious legal fines and punishments.

As a result, roofing contractors should review your insurance policy. To avoid being accused of fraud, they must ensure that they are billing the insurance provider the correct amount.

3. They must verify that their information matches that on the claim.

The insurance company will fuss if the contractor's invoice does not exactly match the numbers mentioned on your claim. Insurance companies will do anything to avoid paying their bills, and if invoices do not match line for line, they will use this as a reason to delay payment. When this happens, the contractor may spend weeks or months negotiating with the insurance company to get the homeowner paid.

4. They want to ensure that the claim corresponds to the work.

An insurance adjuster follows a set pattern when filing a claim. The issue is that not all roofing is created equal. Rather, all roofing is unique, and no two roofs are the same. Regrettably, insurance adjusters do not always grasp this concept. Why? Because they aren't paid to fix roofs. As a result, your contractor will want to double-check that the claim covers everything it should and leaves nothing out. This will ensure that you receive the full amount of compensation to which you are entitled.

Finally, when dealing with insurance firms, don't be surprised if your estimate increases. When negotiating with insurance companies, be aware of contractors who don't raise their prices.