Underpaid roof claim: what to do next

The claim was approved, the check arrived, and it won't come close to covering the roof. This happens on a large share of Texas roof claims, and it's rarely because anyone is lying to you. It's because the first estimate is usually a starting point, written quickly, and missing things. The gap is fixable if you know where it comes from.

Why the dispute happens

An underpaid roof claim usually has one or more of these behind it:

• Missing scope. The estimate covers shingles but skips what a real roof replacement requires: tear-off, felt or synthetic underlayment, drip edge, flashing, ridge vents, pipe jacks, and the gutters, window screens, and soft metals the same hail hit.
• Missing code items. When Texas building code requires something the old roof didn't have, like new decking or ice-and-water barrier in valleys, the estimate has to account for it if your policy includes ordinance or law coverage. Many first estimates don't.
• No overhead and profit. When a job needs three or more trades (roofing, gutters, painting, interior repair), most insurance companies owe general contractor overhead and profit, typically 20 percent. It's often left off until someone asks.
• Depreciation confusion. Your first check may be the actual cash value, which is the replacement cost minus depreciation. Part of that depreciation is usually recoverable after the work is done. If nobody explained that, the first check looks like the final word when it isn't.
• Outdated pricing. The software insurance companies use updates on a schedule. After a big storm season, real material and labor prices in North Texas can run well ahead of it.

What to check before doing anything

• Ask whether your settlement is actual cash value or replacement cost, and how much depreciation is recoverable.
• Put the insurance estimate and your roofer's bid side by side, line by line. Circle everything on the bid that isn't on the estimate at all. Those missing lines are worth more than price differences on matching lines.
• Look for overhead and profit on the estimate if your job involves multiple trades.
• Check for code items: decking replacement, ventilation, valley protection. Ask your roofer what code requires that the estimate skipped.
• Confirm your supplement window. Policies limit how long you have to ask for more, and the clock is already running.
• Don't sign anything marked "full and final," and don't start the work until the scope dispute is settled, unless delay would cause more damage.

When a public adjuster may help

If the gap is a few hundred dollars of pricing on identical scope, let your roofer handle it directly and save the fee. A public adjuster earns their keep when the gap is thousands of dollars and built from missing scope, skipped code items, absent overhead and profit, or a depreciation number that doesn't hold up. Those arguments need policy language and documentation, not just a higher bid.

What Frost Property Loss Advisors does about it

• Inspect the roof and the rest of the property, because hail that hit the roof usually hit other things the estimate ignored.
• Rebuild the estimate line by line in the same software the insurance company uses, so the comparison is apples to apples.
• Submit a supplement with photos, code citations, and policy language attached, not just a number.
• Handle the re-inspection meeting so you don't have to argue with anyone on your own roof.
• Track the depreciation holdback so the recoverable portion actually gets released when the work is done.
• Contingency fee, capped at 10 percent of claim proceeds under Texas law, agreed in writing before we start.

Related questions

The insurance company said their price is what the software allows. Is that final?

No. The software prices whatever scope is entered into it. Most underpayment lives in the missing scope, not the unit prices. And the pricing database itself can be challenged with local supplier quotes.

My roofer says he can "work with the insurance money." Should I just do that?

Be careful. A roofer who cuts the job to fit the check may be skipping code items or quality you'll pay for later. And a contractor who negotiates your claim for you may be violating Texas law, which can put your claim at risk.

How long do I have to ask for more money?

It depends on your policy, but the windows are real and they expire. Read your policy's proof of loss and suit limitation provisions, or have someone read them for you, before assuming you have time.