If you’ve recently filed a homeowners insurance claim in Pennsylvania and noticed your insurance estimate is lower than your contractor’s, you’re not alone. Many policyholders are surprised—and frustrated—when the settlement offered by their insurance company doesn’t come close to covering the real cost of repairs. Whether you’re dealing with damage from a storm, fire, burst pipe, or any other unexpected disaster, this situation can feel overwhelming.
At Alliance Adjustment Group, we’ve helped countless homeowners navigate this exact challenge. You shouldn’t have to pay out-of-pocket for repairs just because an insurance adjuster’s numbers don’t reflect the actual damage. In this article, we’ll break down why insurance estimates often come in lower than contractor quotes, what you should and shouldn’t share, and what steps to take to make sure you’re treated fairly during the claims process.
Why Do Insurance Companies Give Low First Estimates?
It’s not uncommon for your insurance estimate to be lower than your contractor’s, especially when it’s the initial offer. But why does this happen?
Insurance companies work with their own internal adjusters or hire independent adjusters to inspect your property. These professionals often use estimating software like Xactimate, which is designed to calculate repair costs based on preset averages—not necessarily what your local contractor would charge in Pennsylvania.
These first estimates are often conservative for a few reasons:
- Cost Control: Insurance companies are businesses. Their goal is to limit payouts to what they believe is the “reasonable and necessary” cost to restore your property—not necessarily what it will cost.
- Lack of Detail: Adjusters may miss hidden damage or underestimate labor and material costs, especially if the inspection is rushed or done virtually.
- Outdated Pricing: Pricing databases used in claims software might not reflect current market rates in Pennsylvania, particularly with ongoing inflation and contractor shortages.
This can leave you with an insurance estimate lower than your contractor’s—and a gap you’re expected to cover unless you challenge the estimate.
The good news? That initial offer is not the final word. You have options, and you don’t have to accept a payout that doesn’t match the true cost of your loss.
Should You Share Your Insurance Estimate with a Contractor?
When your insurance estimate is lower than your contractor’s, you may wonder whether to hand over the adjuster’s breakdown to your contractor. The short answer? Yes—but with caution and purpose.
A reputable contractor can use the insurance estimate as a baseline to:
- Identify missing scope items (e.g., overlooked structural issues, outdated material pricing)
- Match pricing line items where appropriate, helping to streamline negotiations
- Prepare a more detailed and accurate proposal that reflects what it truly takes to restore your property
Sharing your estimate helps the contractor understand what the insurance company is offering and where the gaps are. This can be especially important in Pennsylvania, where construction costs vary by region and season.
That said, your contractor should never feel pressured to match a low insurance estimate just to get the job. If your insurance estimate is lower than your contractor’s, that doesn’t mean the contractor is overcharging—it often means the insurer underestimated.
One helpful tip: always get a detailed contractor estimate in writing and compare it side by side with your insurance company’s. If there’s a significant difference, that’s where a licensed public adjuster can step in to help bridge the gap and advocate for the payout you truly deserve.
What Happens If My Insurance Estimate Is Too Low?
So, what can you do when your insurance estimate is lower than your contractor’s, and the numbers just don’t add up? This is more than a frustrating situation—it’s one that can delay your repairs and leave you with out-of-pocket expenses you shouldn’t have to cover.
Here’s what happens, and more importantly, what you can do:
1. You May End Up Paying the Difference
If you accept the insurance payout as-is and proceed with repairs, you could be stuck covering the gap between the insurer’s offer and your contractor’s bill. That’s not ideal—especially if you’re dealing with damage from something like fire or flooding, which can be extremely expensive.
2. You Can File a Supplement
In Pennsylvania, and many other states, you have the right to request a supplemental claim. This is a formal request to your insurance company for additional funds based on new information—like a more accurate contractor quote, newly discovered damage, or updated repair costs. A supplement must be supported by solid documentation and a clear explanation.
3. You Can Bring in a Public Adjuster
When you’re dealing with an insurance estimate lower than your contractor’s, it helps to have someone on your side who understands how to speak the insurance company’s language. A licensed public adjuster works on your behalf—not the insurance company’s—to review your policy, document the real extent of your damages, and negotiate a fair settlement.
At Alliance Adjustment Group, we’ve helped homeowners across Pennsylvania recover thousands of dollars in additional claim money through expert documentation and persistent follow-up.
4. Don’t Start Work Without a Plan
If possible, avoid starting repairs before resolving the estimate discrepancy. Starting work without an agreement on scope and pricing can complicate things, especially if you need to file a supplement later.
Insurance Estimate Lower Than Contractor: Get Help for Insurance Claim
When your insurance estimate is lower than your contractor’s, you don’t have to accept less than what it takes to restore your home. You have rights as a policyholder—and options to pursue a fair settlement.
If you’re in Pennsylvania, working with a licensed public adjuster can be the key to leveling the playing field. At Alliance Adjustment Group, we specialize in helping homeowners like you get the coverage they’re entitled to—not just what the insurance company offers first.
We step in to:
- Review your insurance policy and explain what’s covered
- Document all damage thoroughly and accurately
- Negotiate directly with the insurance company on your behalf
- Push for supplemental payments when estimates are too low
When your insurance estimate is lower than your contractor’s, it’s not just a paperwork issue—it’s a financial burden you shouldn’t have to carry alone. We’re here to help you navigate the claims process with confidence, clarity, and compassion.
Need Help With an Insurance Claim?
If you’re facing a low estimate or stalled repairs, don’t go it alone. Contact Alliance Adjustment Group today for a consultation. Let’s make sure you get every dollar your policy promises—so you can get your home and your life back on track.
Disclaimer:
The information provided on this website is for general informational purposes only and does not constitute legal advice.
While we strive to provide accurate and up-to-date information, insurance policies and regulations can vary. It is important to consult with your specific insurance provider or a qualified professional for advice tailored to your individual circumstances.