National Restoration of Northern Illinois
143 South Rt. 12
Fox Lake, IL 60020
P: 847-587-2200

Monday - Friday:
7:30am - 4:30pm

The Proper Role of the Estimate

An area that needs a little exploring is that nebulous term known as the "estimate". For years this word has sent chills up the spines of consumers, Restoration Contractors and claims adjusters alike. What's really interesting is how everyone has a different perspective of what this word really means.

To the insured it means a lot of phone calls trying to get a contractor or repairman to inspect and estimate the damage, for free of course. It also means that one estimate is not enough so now the insured must spend even more time enticing other contractors to come and give their appraisal of the same damages. The inconvenience continues as the hoard of contractors are pouring over the dwelling and personal property, sometimes crossing paths with their competitors creating an uncomfortable scene for the insured.

Once these estimates are completed, the insured usually waits to hear from the agent or adjuster for the next course of action. During this time the insured is receiving calls from the contractors who wrote the estimates asking for permission to start the job.

The insured is thinking that the lowest bid will receive the contract. Many contractors knowing this procedure will fail to price the job properly, leaving out items so that they can return later for a supplemental payment. The insured has the right to select the contractor, at which point the adjuster and the selected contractor can work out the details. However, if the contractor's demands are unreasonable, the adjuster can approach the insured and advise that another contractor should be selected. The insured is now totally confused as to how this system works or where they stand in relation to their loss. Unfortunately, the trauma of the loss continues well beyond the initial damages.

The word estimate has many connotations to the contractor who performs disaster work. Often, contractors feel they must provide free estimates to the consumer and the Insurance Industry alike. Some restoration firms are asked to compile so many estimates that they have been forced to charge for their service. They will never be awarded the job, but are assisting to place a total accurate value to the loss.

Contractors are often at the mercy of the insured who tells him that the adjuster requires three estimates. Yet, the insured has no intention of having the work performed but rather will cash out the loss. Hours of scope analysis and detailed estimating are used by the contractor who has really no hope or recovering the dollars spent, but is merely being used to settle and close the claim.

It is for these reasons that contractors need the support of the insurance industry to protect them from being used in such a manner. This will ensure that quality estimates can be continually provided. Many adjusters wisely do not require three estimates if they know that the one they do receive has been provided from a restoration firm that has a good reputation and track record.

Most reputable restoration contracting firms know how important their credibility is and all strive to maintain the utmost trust of the adjuster. Restoration contractors are specialty contractors who are trained in the repair of casualty losses. Most insureds have no knowledge of these specialists and the adjuster can recommend a quality restoration contractor.

To the adjuster, outside estimates are not necessarily required. Most adjusters know from their own scope of damages the dollars required to make adequate restoration. Sometimes, a trusted restoration contractor is utilized to determine the scope and prepare a detailed estimate for approval and the whole process is accomplished without an adjuster ever seeing the claim personally. Often this is done by phone to expedite the process and get the claim handled as quickly and fairly as possible.

Realistically, adjusters don't really have the time to pour through pages of estimates that basically repeat the same information, especially during periods of heavy claims.

Estimating is a costly procedure that hopefully one day, we will be able to do without. It will take a concerted effort between all concerned parties to make processing work a little smoother.