Partial Approval Supplements
When it comes to storm related insurance claims, partial approvals are a fact of life for the contractor. Some contractors just accept the adjuster’s initial findings and leave thousands or even millions of dollars on the table. Savvy contractors view a partial approval as part of the process and actively work to convert those initially small claims into large, profitable jobs. Supplementing a roofing or siding repairs is the best approach for a contractor to challenge an adjuster’s scope of loss and is a huge opportunity to grow a roofing or siding business.
Partial Approval Supplements FAQ
What are Partial Approval roofing supplements?
A partial approval supplement is when a contractor attempts to convert a roofing insurance claim from a repair to a full replacement or add additional trades to an existing adjuster’s scope of loss. Let’s say you’ve inspected a 30 square roof and found enough storm damage to warrant a claim. An adjuster may agree that a section of the roof was damaged by hail but will only approve replacement of 5 of the 30 squares. In order to get the other 25 squares approved, the contractor needs to determine if the supplement is Product Related or Damage Related. (In our experience it’s about a 50-50 split.) Both scenarios require additional documentation. If the argument is Damage Related, additional damage photos of test squares need to be taken as well as a thorough list of accessories and components not included in the original scope of loss. Some states even have building code requirements that limit the amount of repairs that can be made on a roof, like the Florida Building Code 25% Rule. If the argument is Product Related, then the contractor needs to include documentation that the shingles are discontinued, unavailable, etc. ITEL reports, letters from the supplier, or “do not mix” documentation form the manufacturer should be included with the supplement.
What are Partial Approval siding supplements?
A partial approval supplement is when a contractor attempts to convert a siding insurance claim from a repair to a full replacement or add additional trades to an existing adjuster’s scope of loss. Partial approval of siding claims typically involve repairs or painting sections of damaged siding or replacement of entire elevations of siding. Similar to roofing, the contractor needs to determine if the siding supplement is Product Related or Damage Related. (In our experience it’s about a 50-50 split.) Both scenarios require additional documentation. Hail and wind damage is pretty straightforward with vinyl siding but aluminum siding may require a more skilled approach to documenting the damage. We recommend performing a “Flashlight Test” for inspecting aluminum siding. Chalking up known hail strikes is very helpful for inspection photos as well. If the argument is Product Related, then the contractor needs to include documentation that the siding is discontinued, unavailable, etc. ITEL reports are the industry standard for documenting discontinued siding and available color matches. Some states have specific building codes that require “Line of sight” matching of siding material. Some homeowners insurance policies may even have a matching endorsement.
Why should I supplement partial approvals or repairs?
The answer is simple: to get paid what you deserve. Converting a partial approval or repair into a full replacement is a great way to significantly boost revenue and also demonstrate your expertise to the homeowner. Adjusters sometimes leave out entire trades from the scope of loss. If there is clear hail damage to roofing shingles or siding, chances are that the gutters, downspouts, window wraps and fascia, etc. are also damaged. There are also situations, such as gutter spikes, that a detach and reset will require additional work on the fascia. Or there may be mitered soft metals that cannot be reset. Getting additional trades approved can also put the contractor in a better position to claim Overhead & Profit (O&P) on the job since they are now coordinating a variety of trades. Successfully supplementing partial approvals or additional trades often results in a happy customer. Happy customers tell their friends and family and become customers for life!
How many Partial Approval jobs should I supplement?
Should I hire a 3rd party supplementing company to process my partial approval jobs?
For contractors that are inexperienced with challenging roofing and siding partial approvals or repairs, a 3rd party supplementing company can be a good option. A roofing supplement company will be able to quickly determine if enough documentation exists to move forward. A great 3rd party supplementing company will help teach contractors inception best practices and what documentation is required to convert a repair into a full replacement. Contractors should also be willing to pay more for a partial approval supplement than a standard roofing supplement because there is a much higher revenue upside.