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How Do Insurance Companies Determine Roof Cost?

December 27th, 2023 | 2 min read

By Jeffrey Linta

Perhaps you’re reading this because you’re considering an insurance claim for your roof.

Or maybe you’ve already started a claim. And now you are dealing with a significant cost difference between the approved amount and your roofer’s estimate. 

The insurance process can be frustrating and confusing. 

With our experience assisting approximately 200 customers annually with insurance claims, we’ve gained insight into how insurance companies arrive at their approval amounts. 

It’s crucial to recognize that your insurance company may lack expertise in roofing. When you find yourself in this situation, it may benefit you to contact a roofing company that can help you receive the proper payout from your insurance company.

Generally, insurance companies rely on third-party software to calculate the payout for your roof. In this article, we’ll delve deeper into this process, shedding light on exactly how insurance companies determine approved roof claim amounts. And why it can be so different from your roofing company’s estimation.

Every roof is unique, meaning that many details impact the cost of your roofing project.

Insurance companies tend to rely on third-party estimation software to determine roof costs. Insurance companies most commonly use either Symbility or Xactimate

Then, they break down the cost based on 3 factors:

  1. Independent line items in the estimating software
  2. Market pricing relevant to geographical location
  3. Market pricing relevant to the date of damage

At the end of the day, your insurance company might be motivated to keep your roof costs as low as possible, whereas a roofing contractor may be motivated for the costs to be higher.

Leaving you with the question, “What is the actual cost of my roof?” 

This is why using third-party software is beneficial for every party. Using third-party estimating software like Xactimate and Symbility help to eliminate bias from each party. However, variations in costs may still exist. These variations exist due to the materials required for a project that an insurance company may not be aware of. 

Xactimate Roof Estimate Example

An insurance adjuster may not be aware of the items that are required for your roof to meet code today, especially if they were not present on your existing roof. On the other hand, an experienced roofing company is going to be highly aware of these nuances.

For example, if your home does not have a drip edge your insurance company (in most circumstances) is required to pay for drip edge so your new roof meets code. 

Unfortunately, it can be a daunting task to ensure that you are receiving everything you need from your insurance company, which is why we suggest hiring a roofing company that knows how insurance companies operate. 

If you would like more assistance in determining if your insurance estimate is accurate, we recommend sharing your insurance estimate with a trusted roofing contractor so they can guide you. 

The insurance process can be frustrating and confusing. Whether you are getting ready to start a claim or you’re sifting through differences between your roofer’s estimate and your claim amount, it can take a toll on you.

Now that you know the main details that go into your insurance claim amount, we hope you have a better understanding of how insurance companies determine roof cost.

Additionally, it can be helpful to know how Linta Roofing may be able to guide you through the insurance process. Here, you can learn more about best practices when going through the insurance process. Receiving help through this process can bring peace of mind and reassurance that you are receiving the benefits do to you from your insurance coverage.

We at Linta Roofing are happy to close the gap and help you achieve your new roof with little to no hassle.

Jeffrey Linta

Jeffrey Linta is a 3rd generation roofer who grew up working in his family's roofing business (Linta Roofing, Inc.). He got his start tearing off roofs during the summer while attending North Myrtle Beach High School. Now running one of the most successful roofing businesses in the Grand Strand area, Jeffrey has lived and breathed roofing for his entire working career. Some of his accolades include GAF Master Elite Contractor, SC Safehome certified contractor, Group 5 SC Licensed Commercial Contractor, and GAF Master Commercial roofing contractor. Under his leadership, Linta Roofing, Inc. has served thousands of homeowners and business owners in the Grand Strand area. Linta Roofing achieved awards like the Sun News’s “Best of the Beach” and A+ Rating with the Better Business Bureau all while receiving hundreds of 5-star reviews year after year. Jeffrey is a Grand Strand born and raised local. When he is not running Linta Roofing, he spends time fishing with his wife Erica and walking the beach with his dog Dixie.