Contractor vs Insurance Estimate — Why They're Always Different
The gap between your estimate and the insurance company's Xactimate scope is almost never random. It comes from the same 5 patterns on nearly every claim — and once you know them, you can find them every time.
The gap is structural, not accidental
Insurance adjusters build estimates in Xactimate — a pricing software that assigns a localized cost to every unit of repair work. The adjuster enters a scope: what they observed, what measurements they took, and what codes they applied. The software calculates the total.
The problem isn't the software. The problem is what gets entered. Adjusters are trained to scope what they see, not what the building code requires. They default to the cheapest applicable code, not the one that matches existing materials. And they're working 20+ claims simultaneously, so things get missed.
The result: a structural gap between the adjuster's estimate and what it actually costs to restore the property to pre-loss condition. On a typical residential roof claim, that gap is $2,000–$6,000. On a full exterior claim it can exceed $10,000.
The 5 reasons estimates always differ
These patterns appear on almost every claim. Learn to find them systematically.
Missing code-required items
Drip edge, ice & water shield, and synthetic underlayment are code requirements in most jurisdictions — not optional upgrades. Adjusters frequently omit them entirely because they assume the contractor won't push back.
Common examples
Wrong material grade codes
Using a 3-tab shingle code (RFG 220) when the roof has architectural shingles (RFG 240/242), or using standard grade when the existing material was premium, systematically under-prices the material cost.
Common examples
Missing pitch and story adders
Pitch adders and story height adders multiply every labor line item in the estimate. A 7/12 pitch requires a steep slope adder worth $25–$45/SQ — on a 30-square roof, that's $750–$1,350 in missing labor alone.
Common examples
Matching provisions ignored
When damaged materials can't be matched — because the color is discontinued or the product is no longer made — insurance policy language typically requires full replacement. Adjusters scope partial replacement, expecting it to go unchallenged.
Common examples
Scope limited to visible damage only
Adjusters often scope only what they can see from ground level or a quick inspection. Secondary damage — like step flashing failure, pipe boot cracking, or attic insulation compression from hail — gets missed entirely.
Common examples
What adjusters use vs what contractors include
A typical roofing claim — side by side.
| Line Item | Adjuster Estimate | Contractor Estimate |
|---|---|---|
| Shingle grade | Standard 30yr (RFG 240) | Matches existing grade — may require 40–50yr |
| Starter shingles | Often omitted entirely | All eaves and rakes (RFG 226) |
| Drip edge | Often omitted entirely | All eaves and rakes (RFG 270) |
| Underlayment | #15 felt paper | Synthetic (code upgrade, RFG 356) |
| Ice & water shield | Eaves only or omitted | Eaves + all valleys + skylights (RFG 358) |
| Pitch adder | May use wrong pitch from satellite | Measured pitch with steep slope adder |
| Pipe boots | 1–2 counted | All penetrations counted from photos |
| O&P | Often not included | 10% OH + 10% profit for GC coordination |
What is a supplement — and how does it work?
A supplement is a formal request to the insurance company to revise their estimate upward based on items that were missed, under-priced, or incorrectly scoped. Supplements are a standard, expected part of the claims process — not a dispute.
Compare estimates in minutes, not hours
Appraisly ingests your estimate and the insurance company's scope and highlights every missing line item, wrong code, and pricing discrepancy — automatically.