This is one of the most common questions we get from homeowners: “My contractor says repairs will cost $150,000, but my insurance company only offered $45,000. What do I do?”
You’re not crazy. This happens all the time and you’re right to question it.
Why the estimates don’t match
Insurance carriers often use software like Xactimate that doesn’t reflect real California labor or material costs especially post-COVID. Your contractor, on the other hand, is providing a real-world estimate based on your specific property, permits, finishes, and damage.
Who’s right?
Usually, your contractor. But insurance companies don’t want to pay more than they have to — so they’ll question the scope, ignore line items, or refuse to pay for “upgrades” even when they’re code-required.
What you can do
- Submit the contractor’s estimate to the carrier for reevaluation.
- Request a reinspection or supplement.
- Document everything: prior finishes, invoices, permits, etc.
- Consult an attorney if you’re still being ignored.
We regularly help clients bridge the gap between what their contractor needs and what the insurance company is willing to pay — often by forcing the carrier to the table through legal demands.
If your contractor’s estimate feels right and the insurance offer doesn’t come close don’t settle. Talk to someone who can enforce your rights.