Indemnify cost incurred


New to the forum and was curious about something we were told at a roofing expo about indemnity clause…
We were told that no matter what the insurance estimate was that if a homeowner had an rcv policy and paid us up front in full that the insurance company had to reimburse the homeowner for the cost incurred… as long as the estimate was not bogus and inflated.
We are averaging 425 per square on our roofs and we haven’t started doing this yet but I was curious if this was legit ? Thanks alot



It is not 100% legit. Your best bet is to have the Homeowner submit your estimate to their Insurance Company for approval before you start work. Otherwise, the HO could end up holding the bag. The front page on the Insurance scope of loss most often states something to effect if the Contractor estimate differs from their own, the Policy Holder is to contact the Insurance Company before proceeding with the work.



Yea that’s what I was kinda afraid of… I dont want to mislead a homeowner in any way but I’m being told to do this and only this.



Who specifically told you that? Some “insurance expert”? Here’s the problem with that logic. Who gets to determine what is not bogus and inflated? Where’s the line between bogus and inflated vs fair and reasonable? I assume they have a scope of loss from their insurance, how much is it paying per square?

The way you originally proposed can work for sure but it can also blow up in your face.



I’m not really sure who it was as I wasn’t present at the meeting… but they told the owner and there were other owners there that said they had been doing it.

We are charging on average of 425 a square to our customers but the scope is for more than that through xactimate.

One of the reasons he is doing this new thing is xactimate pricing for our area is ridiculous… just 60 miles away the pricing is 100 more per square on average and we have tried to get the pricing increased to no avail. Any ideas on that?



IF the scope for the roof is higher than your estimate, you have nothing to worry about.

You can have multiple contractors in the area contact Xactimate via email and complain about the pricing. The more, the better. Should include your own pricing in the email. Send pricing for 3 tab ranch and laminated ranch, per square. Don’t blow it up too much or it will be disregarded.

The other thing to do is use Xactimate for your estimates and mark the estimates as complete when done. Xactimate uses completed estimates as part of their pricing calculation.

Keep writing. Unless you use Xactimate, you may not be able to make direct input. If 50% of the contractors in the pricing market would send emails complaining, it would change. Would take a few months but it would catch up.