Three Estimates: How to Compare Contractor Bids on an Insurance Repair

One bid is not enough

A single estimate tells you what one contractor would charge. It doesn't tell you whether that number is high, low, or fair. Three estimates create a range.

If the range is $19,000 to $22,000 and your insurance estimate is $16,500, the gap is clear and documented. If one bid comes in at $28,000 while the other two are around $20,000, you know to ask that contractor what they're including that the others aren't.

How to set up the comparison

Contact three licensed contractors who have done insurance repair work. Give each one a copy of your insurance estimate so they can see what the adjuster scoped. Walk the damage with each contractor separately.

Ask each one to identify items they believe are missing. Request a detailed line-item estimate, not a lump-sum number. A lump sum can't be compared to your insurance scope and is useless for filing a supplementSupplements: Getting Paid for What the Adjuster Could Not SeeA supplement adds items to your existing insurance estimate after the original scope was written. Hidden damage behind walls, code upgrades flagged...
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Scope differences matter more than price

When the three estimates come back, compare the scope of work first. Check whether each contractor includes the same tasks and materials. Look for items that one contractor includes but the others skip.

That might be subfloor replacementSubfloor Replacement: The Hidden Layer That Ruins New FlooringOn my own claim, the adjuster walked right over soft spots in the kitchen floor and never said a word about the subfloor. Not a word. It wasn't unt...
Read more →, content manipulation, or code upgradesYour Walls Are Open. Now the Inspector Wants $5,000 in Upgrades.Nobody warned me about this one. When the drywall came down on my claim, I thought we were just replacing what got damaged. Then the building inspe...
Read more →. These differences are more informative than the bottom-line number. The contractor who identified the most missing items probably wrote the most accurate estimate.

Normal variation vs. red flags

Estimates varying by 10-20% is normal. That's contractor-to-contractor pricing differences. Variations larger than 20% usually mean the contractors are scoping different work.

One might include subfloor replacement while another skips it. One prices semi-custom cabinets while another prices stock. These scope differences are more important than the total.

Dig into the line items to understand what's driving the gap.

Turn the best estimate into a supplement

Take the most thorough contractor estimate and compare it line by line to your insurance estimate. Every item in the contractor scope that doesn't appear in the insurance scope is a potential supplement item. Your contractor can prepare a supplemental XactimateXactimate: The Software Behind Every Insurance EstimateXactimate is the industry-standard software used by insurers, contractors, and public adjusters to price repair work. It contains thousands of line...
Read more → estimate based on these differences.

Three consistent contractor bids showing the same missing items give your supplement real credibility with the adjuster.