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Contractor glossary

Insurance supplement

Updated

Definition

An insurance supplement is a request, made on the homeowner's claim, asking the insurer to add work or quantities its original estimate missed. On a roof, it usually covers items found at tear-off or measured short, backed by photos, measurements and line-item prices.

Also called: Supplement, Roofing supplement

What supplements usually cover

The adjuster's first estimate comes from inspecting a roof that's still on the house, so items can be missed or measured short. Compare your measurements with the adjuster's scope before the job starts, and again at tear-off. Items worth checking:

  • Decking that has to be replaced, found once the old roof is off
  • An extra layer of old roofing the estimate didn't include
  • Short quantities: roof area, waste on a cut-up roof, and ridge, hip, valley and eave lengths
  • Steep or two-story labor on a roof priced as walkable
  • Flashing, pipe boots, vents, starter and other accessories
  • Items your local code requires on a re-roof, where your adopted code calls for them
  • Permit fees, if the scope left them out

Whether code items are paid can depend on the policy's coverage for building code upgrades, often called ordinance or law coverage, so have the homeowner check before you count on it.

How to build one an adjuster can approve

Aim for a request the adjuster can approve from a desk, without another trip up the ladder.

  1. Photograph before you cover anything. For each item, a wide shot that shows where it is on the roof and a close-up that shows what's wrong.
  2. Measure and count. Sheets of decking, linear feet of flashing, squares of an extra layer. Attach your measurement report if you used one.
  3. Write each line in the adjuster's units (squares, linear feet, each), so it drops straight into the estimate.
  4. Back up code items with the code section your building department enforces, in writing if you can get it.
  5. Send it promptly, with the homeowner copied, and log what you sent and when.
  6. Get the approval in writing, usually a revised estimate, before you bill the item as covered.

Example: The adjuster's estimate includes no decking. At tear-off, your crew finds 8 sheets of rotted plywood. Your contract prices extra decking at $80 a sheet, so you replace them, photograph each area and send a supplement for 8 sheets, $640, with the photos and a marked-up roof diagram. The insurer approves it in a revised estimate, and the $640 goes on your final invoice as an approved supplement. The numbers are made up for illustration.

A supplement is not a change order

A change order is an agreement between you and the homeowner to change the work or the price. A supplement asks the insurer to pay for something on the homeowner's claim. Extra work found mid-job often needs both: the homeowner's written approval to do it (or a per-unit price already in your contract) and a supplement asking the claim to cover it. Your contract should also say who pays if the insurer says no. How to write a roofing estimate covers pricing decking and other hidden items per unit, so the roof never sits open waiting on an answer.

Common mistakes

  • Waiting for the final invoice. Send supplements as you find items, so the claim is settled when the roof is done and the recoverable depreciation can be released on one final invoice.
  • Photos that prove nothing. A close-up with no context, or a shot taken after the new roof is on, won't support a line item.
  • Padding. Every line should be work you did, in quantities you can show. Never use a supplement to make up for a deductible you didn't collect. One unsupported line costs you credibility on the next claim with that insurer.
  • Arguing coverage for the homeowner. The claim is the homeowner's. Document and price your work; what a contractor may do beyond that on a claim is set by state law, so check with your state's department of insurance before you negotiate with an adjuster.

Go deeper

Roofing guideHow to Write a Roofing EstimateWhat goes in a roofing estimate: squares with pitch and waste, line items adjusters expect, code items, decking allowances, photos, warranties and payment terms.Roofing guideHow to Invoice Roofing Jobs (Including Insurance Claims)How roofers invoice retail and insurance jobs: allowances, ACV and depreciation checks, deductibles, supplements, mortgage checks and lien waivers.Roofing guideHow to Price Roofing JobsPrice roofing jobs from real measurements: squares, pitch factors, waste, tear-off layers, decking allowances, code line items and insurance work.GuideHow to Handle Change OrdersA contractor's process for change orders: the contract clause, what to say on site, what the form must include, how to price changes and how to bill them.
Actual cash value (ACV)Actual cash value (ACV) is the value an insurer puts on damaged property at the time of the loss, usually figured as the cost to replace it minus depreciation for age and wear. On a roof claim, the first insurance check is typically based on it.Recoverable depreciationRecoverable depreciation is the part of a replacement cost insurance claim that the insurer holds back from the first payment and pays once the repairs are finished and documented. It's the difference between the replacement cost and the actual cash value.Change orderA change order is a written amendment to your contract that changes the scope of work, the price or the schedule, approved by the customer before the changed work starts. It records what changed, the added cost or credit, the new contract total and any new completion date.Scope of workA scope of work is the written description of exactly what a job includes and what it excludes: the tasks, materials, quantities, locations and standards of finish. It's the part of an estimate or contract that defines what the price buys, so anything outside it needs a change order.Roofing squareA roofing square is 100 square feet of roof surface. Roofers measure roofs, order materials, price labor and compare jobs in squares, so a roof with 2,400 square feet of surface is a 24-square roof.Building permitA building permit is written approval from the local building department to do regulated construction, plumbing, electrical or mechanical work. It comes with inspections at set stages, and the job isn't finished until the inspector signs off on the final.

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