AllState estimate issue


#1

Really, if any of you Northern guys want to come down here to Texas & deal with the heat PLUS the crappy insurance estimates we have to wrangle over, then come on down!!!

Here’s the deal, line for line according to AllState:

Remove shingles, 3T, 25 yr. // 24.43sq @ 16.51 = 403.34 (repl. cost)

Replace shingles, 3T, 25 yr. // 26.67sq @ 37.58 = 1,002.26 material Replace shingles, 3T, 25 Yr. // 24.67sq @ 23.20 - 572.34 Labor.

Remove ridge shingles 134.8 lin. ft. @ .30c per. Replace ridge shingles 134.8 lin ft. @ 1.23 per.
Replace felt, 15 # 24.43 @ 8.98
Special height, 2 story 24.43 @ 6.07
Special cleanup - 6.1 hours @ 15.7 = 95.77. ---------roof totals: 2,647.62------
(note: not all items were listed as actual cash value; unsure as to why).

After those figures above, AllState does a total summary with an estimate total then takes away an amount “not subject to overhead & profit”, this one was $ -95.88).

Next is
amount subject to overhead & profit
contractor’s overhead & profit
Sub Total
Sales Tax, Total with tax,

less non depreciation
Sub total,
Deductible, etc. etc.

Bottom line: 27.85 installed squares, current is a 3T hip roof, 2 story, insurance’s offer:

$ 3,558.07.

Around here, labor is about @ $ 35.00 base amount plus extras such as contractor (me) purchasing staples & the occasional Gatorade, steeps, 2 story, remote deliveries, etc.

Man, I REALLY REALLY hate AllState adjustments.


#2

That’s prolly what they offer here too RHR. I don’t know how others are getting big, let alone fair bucks from an insurance job.
As the fool who buys their insurance, and meets all legal requriements to do their work, I am between 40-60% higher than the price the ins. cos. offer.


#3

An adjuster from Texas who owns a house insured for $325K said he writes roofs at $125 a square in Texas all day long, going insurance rate, American Family. When he asked about the 6/12 we were on top of he said, “What is this one going to pay, about $285 a square”. Learning not to talk prices with field adjusters just said, “sure”. When it was said and done I got $324 a square for a one layer three tab 6/12 25 sq’s. Most insurance jobs yeild from $300-400 a square for one layer roofs.

I’ve said it on public forums before and I’ll say it again, “Allsate insurance is no good”. Don’t be led into thinking your in good hands with Allstate because your not.

Tow reasons why I’d never recommend Allstate to anybody. Allstate required adjusters to circle and document 16 hail hits per 1sq of roofing in 2-4 spots. Say if you have a 50sq roof and they only circle 12 spots on four sections. The adjusters says to the homeowner that although the roof has about 600 hail hits on his roof it’s not enough to total it, it needs 800 plus. Once aproved IF aproved they come in at about 20-40% less than the industry standard for insurance roofing work. I doubt their premiums are 20-40% less than say American Family who pay full Xactimate prices 90% of the time for me. Or State Farm who pays more with simple documentation.

By way of comparison AAA Insurance only needs 4 hits on 1sq on two pieces of roof. State Farm and American Family need 6-10 as do most independant adjusters.

Chub is perhaps the best insurance but Met Life is right up there, my father just got a better quote on auto insurnace with Met Life than with State Farm.


#4

They are supposed to pay the actual out of pocket cost that they paid for a contractor to replace with the same kind of materials, not including upgrades. It is your responsibility to get them to sign your contract first and then they will be obligated to pay the actual costs incurred.

The following information is from the Insurance Information Institute.

iii.org/individuals/homei/help/amount/

Ed

HOMEOWNERS INSURANCE INFORMATION

How is the settlement amount determined?
The settlement amount depends on which type of policy you have. Having inadequate insurance can affect the amount of compensation you get.

Replacement Cost and Actual Cash Value
Replacement cost provides you with the dollar amount needed to replace a damaged item with one of similar kind and quality without deducting for depreciationâ€â€


#5

Re: get the contract & then insurance has to pay the “equal & like amounts” cost, etc.

What about the “get 3 estimates” & even then, the independent adjuster (it’s 2 story & out here, IIRC, AllState uses contract adjusters for 2 stories & for steeps) said AllState has “simply refused to pay the higher amount saying they can get a roofer to do the work for the amount they’re offering.”

I think what he was intimating but couldn’t really say due to liability issues on his end was that AllState figures the customer could somehow go direct on the labor & skip a contractor.

Thoughts? I’m really wanting this job as he’s the son of someone I just did a project for & he’s a great guy - would be a good reference & all that, however I’m taking a bit of a bath on this one if I do it for the estimated amount (BTW, the size is only an 8% waste on a hip roof; nobody has spotted that yet).

This is the first AllState adjustment I’ve really ever had a bit of an issue with & have done plenty of their customer’s roofs in the past.


#6

Once the homeowner signs a contract with you for the same scope of the project as the type of roof they have and the HO realises that he is responsible for his own deductible and any upgrades, whether they are newer code requirements, (Unless their policy covers code upgrades), or for a better shingle and better underlayments that they may not currently have, such as Grace Ice and Water Shield or Synthetic Felt paper or Ridge venting instead of mushroom (turtle) vents, then the insurance company is obligated to pay the actual out of pocket costs for the reasonable amount contracted for.

Once the job is complete and they send in the final invoice, the insurance company MUST, per their own contract pay the customer what they were entitled to receive.

They will always fight with the contracted amount saying that they can get it done cheaper, but if that is your standard rate and you have a signed contract, they will be obligated to reimburse the HO for the balance rightfully due.

Ed


#7

[quote=“ed the roofer”]Once the homeowner signs a contract with you for the same scope of the project as the type of roof they have and the HO realises that he is responsible for his own deductible and any upgrades, whether they are newer code requirements, (Unless their policy covers code upgrades), or for a better shingle and better underlayments that they may not currently have, such as Grace Ice and Water Shield or Synthetic Felt paper or Ridge venting instead of mushroom (turtle) vents, then the insurance company is obligated to pay the actual out of pocket costs for the reasonable amount contracted for.

Once the job is complete and they send in the final invoice, the insurance company MUST, per their own contract pay the customer what they were entitled to receive.

They will always fight with the contracted amount saying that they can get it done cheaper, but if that is your standard rate and you have a signed contract, they will be obligated to reimburse the HO for the balance rightfully due.

Ed[/quote]

This works great until you have to deal with the insurance compnay on another job. If you keep bugging them with a signed contract for more money before you know it their not going to want to work with you. What they tell me is, “We don’t use Xactimate, your prices are too high, here’s what we’ll pay”.


#8

Seriously, Ed, all I have to do is get a signed contract @ my price (provided I’m not asking for a crazy dollar amount) & that’s that? AllState will pay my figure because I’m the contractor the customer selected?

Seems difficult @ best & impossible @ worst.

And, I guess I’m not as far along as y’all are because I don’t have any Exactimate software. What I suppose I can do is to use estimates from other insurance companies on repairs done this year & charge similar amounts as a base price per square & then add the “typical & ordinary” price per square for extras such as 2nd story, etc.


#9

RHR-

You nmay want to try the free 30 day version.

It is construction cost data insurers, and their associates, reference for reconstruction labor, materials, and other contractor costs.

craftsman-book.com/downloads/dow … load_id=74