Ask Your Question

Angie's List Answers is the trusted spot to ask home improvement and health questions and get answers from service companies, health providers and consumers. For ratings and reviews on companies in your area, search Angie's List.

Top 30 Days Experts
Rank Leader Points*
1 kstreett 240
2 Guest_9020487 110
3 Guest_9190926 105
4 GoldenKid 100
5 ahowell 95
6 KnowledgeBase 95
7 skbloom 80
8 Guest_98024861 70
9 Guest_9311297 70
10 Guest_9400529 70

*Updates every 4 hours

Browse Projects By Category

Question DetailsAsked on 6/4/2016

How does the free market work in insured roof replacement, if all roofing companies charge the same claim amount?

It seems like there is no competitive bidding in the roof replacement process.
They all are going to charge the amount allowed in the claim, if they charge less the insurance company, not the home owner gets a better deal. Why don't they just send out their own roofers and skip the process, save everyone a lot of time. If there is no competition there is no free market, that is a rigged system by definition, and not rigged in the home owners favor.

I am getting bids for a hail damaged roof replacement, and would like not to go out of pocket by getting competitive bids, and have been told that to do that would be fraudulent. I guess the insurance industry has succeeded in making competitive pricing fraudulent. Dry your eyes, insurers, and contractors, nobody believes your being treated unfairly in this game, so quit crying. It's a game and we all know who loses, check the stock market, it isn't the insurance companies.

Do you have the same question? Follow this Question

3 Answers



You are more than welcome to get competitive bids to complete work paid for by an insurance claim. You will have to provide competitive bids to your insurance company and they will simply match the cheap estimate/job dollar figures.

What you're trying to do is profit off a loss covered by your insurance company. That's called insurance fraud wether you want to acknowledge it or not.

Good luck with your claim and have a great day!

Answered 4 years ago by cewoodford


I understand your viewpoint, but where is the incentive to get the best price for your roof replacement. Who will profit from that work? Not the home owner, only the insurer.

It seems like the system has eliminated the free market from the process.

Have you ever had an insurance company try to wriggle out of paying a claim, "No" you say? Then you have never had many claims. That's what I call fraud.

By the way, do you work for an insurance company or an contractor, tell the truth now.

You have a great day too!

Answered 4 years ago by unhappyclaimant


Whatever led you to believe free market system and insurance are in any way connected ? The way claims adjustment is done is for their convenience, using standard tables of costs and such - not to save you money.

There are a few companies out there that will share a reduction from their claim allowance with you - i.e. if you get a cheaper price they will apply half the savings against your deductible, but not many do that.

Many will also pay you the claim estimate amount they come up with (which is initially commonly about 1/2-2/3 the maximum they are actually prepared to pay after the contractor points out specific damage items to them) as a cash settlement, for you to then get the work done yourself - subject to proof that the damage was actually repaired. Any cash settlement they will give you in lieu of paying a contractor is generally less than you can find a contractors to do it for, though can work in a DIY situation if they allow that.

On the "not go out of pocket" issue - if you mean not paying more on top of the insurance settlement for the job, that is why most roofers accept the insurance amount - they know that is about all the market will bear, that with the exception of upgrading of materials (say to a longer-life or hail-resistant shingle) few people will pay out of pocket on top of what the insurance company estimate of damages is.

Then the insurance company pays the estimate of damages minus your deductible - and in cases where your policy calls for amortized rather than replacement-value coverage, they also deduct the amortization. SO - for instance - say you have $2500 deductible and a $10,000 claim adjustment and contractor agrees to do the job for that. If you have replacement value coverage that will actually cover all the damage under the policy terms, the insurance company pays the $10,000 minus the $2500 deductible - so their check is $7500 and you pay $2500 out of pocket. If it was an amortized value policy and say your roof was 8 years into a 20 year rated life, they would pay for the undepreciated (remaining) value of the roof minus your deductible - so $10,000 x (20-8 years)/20 years - $2500, or 60% of the roof cost (remaining life on the original roof) = $6000 - $2500 deductible = $3500 claim payment by them, and you pay the $4000 depreciated roof value portion plus the $2500 deductible, for a total out-of-pocket of $6500.

In any way avoiding the deductible, say by the contractor convincing the job should actually cost $2500 (or more) in addition to the original adjusted cost and then crediting you the deductible amount on the invoice (or bumping the cost back down to effectively eliminate your deductible or a portion of it) is insurance fraud. If you do not pay the full assessed deductible (the amount the insurance company thinks you are paying, after any adjustments or credits on their part) you are supposed to refund that difference to the insurance company - to not do so is civil fraud, in probably most jurisdictions criminal fraud, and will almost certianly cost you your insurance policy plus put you on the insurance industry blacklist for fraud so no other insurance company will sell you insurance. And that could mean ANY insurance - home, personal articles, business, health, car, boat, etc. And ditto to any bonding you might have related to your job or type of business. Insurance fraud can also result in you losing your job, any professional registrations or licenses, security clearances, etc. Don't try it.

Answered 4 years ago by LCD

Related Questions

Terms Of Use
Privacy Policy