CHICAGO — Supplementing an insurance claim — requesting additional payment for costs that were not included in the initial estimate or that were discovered during the course of the restoration work — is a legitimate and necessary part of the restoration process. Here is how restoration contractors can supplement claims effectively and professionally.
Supplements arise for several reasons: hidden damage that was not visible during the initial assessment, code upgrade requirements that were not anticipated, material price increases between the estimate and the reconstruction phase, and additional scope items that were overlooked in the initial estimate.
The key to a successful supplement is documentation. Contractors must be able to demonstrate that the additional costs are legitimate, necessary, and supported by the applicable estimating standard — typically Xactimate. Photographs, moisture readings, code citations, and material invoices are the most effective forms of documentation.
Xactimate is the estimating software used by the majority of insurance carriers and restoration contractors in the United States. Contractors who are proficient in Xactimate and who understand how to properly code and document additional scope items are significantly more successful in obtaining supplement approval than those who are not.
The supplement process requires effective communication with the insurance adjuster. Contractors who present supplements professionally, with clear documentation and a respectful tone, are more likely to obtain approval than those who present supplements as demands or who use adversarial language. Building a positive working relationship with adjusters is a long-term competitive advantage.
