Contractor Estimate vs. Carrier Estimate: Why Both Matter

Why Your Insurance Estimate Isn’t Enough: The Power of a Contractor’s Estimate

You might be thinking: “Why should I bother getting a contractor estimate when my insurance carrier is going to provide me one anyway?” It’s a fair question. After all, your insurance carrier is paying the claim, right? So why not trust their estimate?

Here’s the thing—while the insurance carrier’s estimate is a starting point, it’s not always the most accurate reflection of what your repair costs will actually be. Getting an estimate from a contractor gives you a clearer picture of the actual costs and strengthens your position in negotiations. When you have detailed breakdowns from a professional who will do the repair work, you gain leverage to challenge lowball offers. It’s a strategic move to help put you in control rather than leaving everything up to the insurance carrier.

Estimate:

A detailed list of damages and cost to repair each item. Estimates can be written by Premier Claims, a contractor, or the insurance carrier (and oftentime, all three).

The Carrier Estimate: What Your Insurance Thinks

Your insurance carrier will provide an estimate based on their damage assessment. However, this estimate is often lower than the actual cost of repairs. Keep in mind that your carrier’s primary interest is to payout the least amount possible in a claim—not ensuring you receive every dollar needed for complete restoration. They may rely on outdated pricing models, overlook hidden damage, or apply policy limitations that conveniently reduce the scope of work documented.

The Contractor Estimate: What the Repairs May Cost

Your contractor’s estimate should more accurately reflect the real-time materials, labor, and project scope costs. This estimate is often higher than the carriers because it accounts for actual market rates, code upgrades, and any unforeseen damages that become apparent during repairs.

Why Both Estimates Matter

At Premier Claims, we use the contractor’s estimate as a critical tool in the negotiation process with your insurance carrier. While the carrier’s estimate provides a baseline, it often falls short of covering the full cost of repairs. A contractor’s estimate reflects real-world pricing—accounting for labor, materials, code upgrades, and hidden damages—which helps establish the value of your claim.

Without both the carrier’s and contractor’s perspectives, you might miss out on the full compensation needed to repair your property appropriately. The contractor’s estimate highlights gaps in the insurance carrier’s assessment, aiming for nothing to be overlooked. Having this documented cost of repairs can strengthen your case and increase the likelihood of a fair claim resolution. 

Gather Negotiation Tools

The stronger your evidence, the stronger your case—this is how we push back against lowball offers and fight to ensure you have the funds needed to properly restore your property. Navigating insurance claims can be overwhelming, but you don’t have to go it alone.

Premier Claims is here to advocate for you!

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Public Adjusters and Position Letters—A Match Made in Heaven 

Writing a position letter can feel like explaining quantum physics to a toddler—complex, frustrating, and next to impossible. That’s where public adjusters come in. They’re like the translators, advocates, and strategists you didn’t know you needed. 

1. Decoding Insurance Jargon

Let’s face it—insurance policies are written to confuse. Public Adjusters have the expertise to cut through the legalese and pinpoint the clauses that strengthen your case. 

2. Presenting Rock-Solid Evidence 

It’s not enough to say, “My roof is damaged.” Our experienced inspection team and licensed public adjusters work together to identify damage that otherwise may have been overlooked. They know how to match your property’s damage to th specific coverage outlined in your policy, aiming for nothing to be left on the table. Here’s how they build a case:

Public adjusters know what carriers look for—and what they’ll have a hard time disputing.

3. Speaking the Carrier’s Language

Public adjusters know how to phrase arguments that resonate with claims departments. They craft letters that are professional and persuasive on behalf of the policyholder.  

What Makes a Public Adjuster’s Position Letter Different?

When experts weigh in on the details, the arguments in a public adjuster’s position letter can become even more compelling, making it harder for carriers to delay, deny, and defend. 

The Ripple Effect of a Strong Position Letter

A well-crafted letter doesn’t just improve your chances of getting paid—it may change how the carrier approaches your claim. They know they’re dealing with someone who isn’t backing down without a fight. 

Why You Shouldn’t DIY It

While it may be tempting to draft your own position letter, the stakes are too high to risk mistakes. Premier Claims brings the experience and objectivity to advocate for you effectively. Whether your claim has been underpaid, delayed, or flat-out denied, a public adjuster can take your position letter from “meh” to “masterpiece.”

Contact Premier Claims today!

 

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What is a Public Adjuster?

When faced with significant damage to your property, navigating the complex terrain of insurance claims can be overwhelming. That’s where a public adjuster comes into play. What exactly is the role of a public adjuster, and how can they assist you during this stressful time?

Decoding a Public Adjuster’s Role in Your Claim

A public adjuster is an insurance expert you can hire to manage your claim for you. Unlike insurance company adjusters who represent the insurer’s interests, they work exclusively for you. Their primary goal is to ensure you receive every dollar you’re entitled to under your policy.

Role of a Public Adjuster

Damage Assessment

A public adjuster will inspect and assess the damage to your property. Furthermore, they will evaluate the scope of repairs and estimate the replacement value for those repairs.

Policy Understanding

They will help you understand your insurance policy, decipher the legal jargon, and ensure you are aware of what is covered.

Negotiation

Public adjusters communicate with your insurance carrier on your behalf, attempting to negotiate a settlement that accurately reflects the damage and coverage.

Documentation

They document everything you’ve lost and double-check the damage to your property, potentially leading to a larger insurance settlement.

When Should You Consider Hiring a Public Adjuster?

Large or Severe Claims

Public adjusters are particularly valuable for significant claims involving high-value or extensive damage to your property, such as after a fire or a natural disaster.

Claim Disputes

If you are dissatisfied with your insurance carrier’s settlement offer or feel that the claim settlement is too low, they can help dispute the settlement and advocate for a higher payout.

Complex Claims

When you face complex claims involving multiple policies or intricate questions about coverage, a public adjuster’s expertise can be invaluable.

Benefits

Fair Settlements

Public adjusters are skilled negotiators, fighting for your right to a fair and accurate settlement. This can be hard for a policyholder to obtain on their own.

Time Savings

They handle all the paperwork and communication with your insurance carrier, saving your significant time and stress.

Policy Understanding

Additionally, public adjusters help you comprehend your policy details and navigate the often confusing claims process, ensuring you make informed decisions throughout the entire journey.

Reliability

Get Referrals

Seek recommendations from friends, family, or online reviews to find reputable public adjusters in your area.

Check Licenses

Ensure the adjuster holds a license in your state. Most state insurance departments provide online license verification tools.

Research

Look for adjusters affiliated with professional associations like the National Association of Public Insurance Adjusters, ensuring adherence to industry standards and ethics.

Read Contracts Carefully

Understand the fees, services, and terms, outlined in the contract before hiring an adjuster.

Remember, hiring a public adjuster can level the playing field between you and your insurance carrier, ensuring you receive the compensation you deserve after a disaster. Furthermore, by entrusting the complexities of your insurance claim to a skilled professional, you can focus on rebuilding and regaining peace of mind while your public adjuster advocates for your rightful settlement.

 

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