HOW SUPPLEMENTING WORKS
ROOFING SUPPLEMENTS ARE THE DIFFERENCE BETWEEN AN INITIAL INSURANCE SCOPE AND THE FINAL LIST OF CRITICAL CONSTRUCTION ITEMS THAT ARE REQUIRED TO GET THE JOB DONE RIGHT.
IF YOU’RE A ROOFING CONTRACTOR WONDERING ABOUT HOW THESE CONTRACTING SUPPLEMENTS AFFECT YOU, WE’RE GOING TO ANSWER YOUR QUESTIONS TODAY.
WHAT IS A SUPPLEMENT?
A supplement can be defined as the charge(s) that are added after an insurance claim has been submitted. Supplements can include items that were:
Omitted
Overlooked
Underpaid
Discovered after work began
Wondering if these supplements actually affect you and your work? Consider the following question:
Have you ever had to take a loss on a job?
Have you gotten less profit than you expected from a job?
Have you had to put in more work without additional compensation?
If yes, those are the differences caused by not having a job that ended up costing more than the estimate. Supplements can help cover that cost.
Submitting supplements, which would include recognition of items like those above, is perfectly legal and allowed by insurance companies.
WHAT ARE ROOFING SUPPLEMENTS?
These are contracting supplements pertaining particularly to the roof of your home. We make specific note of it because of how often roofing projects need to be supplemented.
This happens because your adjuster most likely will not have a background in roofing. Though they are plenty experienced, it may still be difficult for them to estimate the true extent of a claim before the project begins.
Add on to this the fact that the roof is a particularly time-sensitive part of the house. If urgent repairs are needed, a contractor responsible for the roof may not have the time to wait for the insurance company to approve the supplement. If they were to wait, they could risk rain damage, leaks, and other problems.
REASONS CONTRACTORS DON’T IMPLEMENT SUPPLEMENTS
It stands to reason that these supplements are beneficial to roofers and help ensure the pay for the project matches the cost.
So, why don’t more roofers use them?
Unfortunately, the process to implement and collect on supplements can be time consuming and challenging for your business.
Here are a few other reasons why people are skipping on this extra revenue:
Inexperienced- They’re not familiar enough with scopes to know how to understand where items have been omitted
In a hurry- This is a process, so if a contractor is rushing off to his or her next job, they might not think claiming a few hundred or few thousand dollars is worth the time
Not good with technology- It may take being comfortable with an industry-standard software like Xactimate to better understand these estimates
This is not to say all insurance adjusters are underestimating your projects. Often unseen work comes up during the project and the adjuster isn’t there for the repairs and installations.
These supplements help to ensure fair, accurate pay throughout the length of the work.
WORKING WITH A SUPPLEMENTING COMPANY
Deciding how to move forward with the supplementing process is an important first step. It is recommended to have an agreement with your homeowner prior to getting a supplement started.
Rather than handling supplementing internally, where there is added labor and technology costs, having a reliable third party vendor, who is experienced in the supplementing process, plays a key role in the success of a roofing company.
HOW TO PREPARE YOUR ROOFING SUPPLEMENTS
Given that a desk adjuster has limited access and information about the property and the scope of the project, an experienced adjuster with Xactimate knowledge is needed.
In addition to knowledge about the software, they should have a digital camera and safety equipment to thoroughly inspect the area and create a new claim. Those photographs should include basic photos like the house itself, the house number (either the front door or the mailbox). They should also be time stamped in some way.
This documentation allows the desk adjuster to better understand the requested item (our supplement) and authorize the new expense.
WHEN TO CONSIDER OUTSOURCING CONTRACTING SUPPLEMENTS
Adding supplements to an existing claim does require working with the insurance company. Whether for individual homeowners or small contracting firms, it can be costly and challenging to spend the time negotiating.
If you’re looking for support in submitting supplements, or if you just want more information on how to handle supplements in the future, we encourage you to contact us at US Home Supplements.
