If I get a scope of loss estimate from the insurance adjuster and then I get an independent estimate from a contractor a short time later that is “significantly” more than the insurance company’s estimate (let’s say 40-60% more), would that not be considered bad faith? If it can be argued that the insurance company was acting in bad faith, what are potential options for recourse?
Andrew Smith asked 1 month ago 2 Answers
Hi Andrew, while we understand your concern about the difference between the scopes/estimates, we would not suggest this is bad faith by the insurance company.
It is very common to have differences in ‘scopes’ of repairs. Most importantly is to get an agreement with your carrier on the scope of repairs. This needs to happen before pricing can be evaluated. Pricing differences can certainly occur if a carrier has forgotten to include all relevant repair items, leaves items ‘pending or open’ until more information is secured, or needs actual subbids to verify repair methodology and/or cost. We recommend reviewing the following resources on UP’s website:
https://uphelp.org/claim-guidance-publications/the-scoop-on-scope-of-loss/
https://uphelp.org/claim-guidance-publications/xactimate-demystified/
Don’t be afraid to speak with your adjuster about scoping differences so that when it is time to interview contractors for repairs, you can compare ‘apples to apples’ with a contractor’s pricing and estimate.
UP Staff
Hi Andrew, while we understand your concern about the difference between the scopes/estimates, we would not suggest this is bad faith by the insurance company.
It is very common to have differences in ‘scopes’ of repairs. Most importantly is to get an agreement with your carrier on the scope of repairs. This needs to happen before pricing can be evaluated. Pricing differences can certainly occur if a carrier has forgotten to include all relevant repair items, leaves items ‘pending or open’ until more information is secured, or needs actual subbids to verify repair methodology and/or cost. We recommend reviewing the following resources on UP’s website:
https://uphelp.org/claim-guidance-publications/the-scoop-on-scope-of-loss/
https://uphelp.org/claim-guidance-publications/xactimate-demystified/
Don’t be afraid to speak with your adjuster about scoping differences so that when it is time to interview contractors for repairs, you can compare ‘apples to apples’ with a contractor’s pricing and estimate.
UP Staff
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