Supplementing on siding insurance claims is an important part of growing your business. Whether you are a roofing contractor who handles a few siding jobs or focused entirely on insurance siding work, supplements are a great way to make sure you get paid what you deserve and that the adjuster’s Xactimate estimate includes everything needed to do the job right. If the scope of loss does not include all the correct materials, quantity, labor, code items, etc. then you as the contractor should submit a new Xactimate estimate with photos and other documentation to request additional funds.
Frequently Asked Questions about Siding Supplements
What are Siding Supplements?
A siding supplement or contractor supplement is when a contractor asks for additional materials, labor, or trades to be added to the insurance claim for a siding job. An adjuster may not include enough cladding, house wrap, light fixtures, plumbing accessories, j-channel, etc. on the scope of loss to get the job done correctly. In some cases, these missing items are required by local building code or local laws that mandate any siding replaced must match the existing structure. When this happens, a contractor writes a new Xactimate Estimate to include those missing items and submits it to the insurance company for approval. Contractors must also include supporting documentation such as photos, measurements, local code requirements, ITEL lab results, and invoices to explain why these funds are needed.
Why should I supplement Siding Jobs?
The answer is simple: to get paid what you deserve. Siding tends to be a smaller percentage of a contractor’s total storm restoration jobs but siding supplements typically come with a much higher average dollar amount per claim. Adjusters often approve siding repairs, painting, or remove & replace on specific elevations of the home. However, repairs are usually not feasible and many homes now have code requirements that have been updated since the initial installation. Contractors should supplement their siding jobs, especially if their team is new or not familiar with building siding estimates.
How many of my siding jobs should I supplement?
You should review all of your jobs to see if there is a need to file a siding supplement (there usually is). Aluminum Siding in particular can become damaged with very small hail and often cannot be matched with products currently available from suppliers. Supplementing Siding jobs is all about consistency and process. Having a standardized process for more thorough inspections makes it easier to determine if an insurance job requires a supplement and makes it easier to file one.
How much money can I make by supplementing all my Siding jobs?
Siding Contractors typically earn between $3,000 and $8,000 per job when they supplement. The amount you make will largely depend on the type of documentation you provide with your supplements, and the type of supplement being submitted. The largest supplements for insurance siding jobs are from converting a partial approval into a full approval or at least getting the adjuster to agree to paying for additional elevations of the home.
What happens if the homeowner has hail damage on his/her aluminum siding?
Aluminum siding, like any soft metal can be easily damaged by hail, even hail as small as 0.25-0.5 inches. The biggest issue with aluminum siding insurance claims is product availability. Aluminum siding was a very popular exterior cladding material in the 1970s and 1980s but was generally phased out by the mid 1990s. Therefore, most aluminum siding found on homes today has been discontinued and is no longer available to purchase. Sometimes an adjuster will approve painting or sections of aluminum siding repair on the Xactimate estimate. These types of repairs are not feasible. Removing a single piece of aluminum siding will damage surrounding pieces. This scenario is a great time to supplement a siding job. If there is legitimate, documented storm damage to aluminum siding, even on one side of the home, a contractor can submit a supplement to get the siding on the entire home replaced.
What does “Line of sight rule” mean for siding jobs
“When a loss requires replacement of items and the replaced items do not match in quality, color or size, the insurer shall replace as much of the item as is necessary to result in a reasonably uniform appearance within the same line of sight….”
What does “Siding Matching Coverage” mean?
While “Matching Coverage” is similar to “Line of Sight” in that they both deal with material uniformity of a siding installation, siding Matching Coverage specifically relates to the homeowner’s insurance policy. When dealing with a siding storm damage claim, the contractor can not discuss the homeowner’s policy with the adjuster. That being said, it is always a good idea to educate the homeowner on endorsements or exclusions. The homeowner can review their homeowner’s policy to verify that it contains or does not specifically exclude “Matching Coverage.” Matching Coverage may even be a separate endorsement as an add-on to the original policy. Either way, it’s good to educate the homeowner so that once you have exhausted all possible opportunities for the insurance company to cover the cost of the repair, the contractor developed enough trust with the homeowner that they will still hire you to do the work.
When do I start supplementing a siding job?
There are two different times you can submit a siding supplement: Pre-Production (before the install) and Post-Production (after the install, before depreciation is released). The optimal way to supplement a siding job is to file both Pre-Production and Post-Production supplements on insurance siding jobs. Doing so results in 2-4 times more supplement dollars approved per job and higher approval rates overall.
Why should I hire a siding supplement company?
There are many reasons why it makes sense to hire a 3rd party to supplement your siding jobs. The number one reason is that many roofing contractors do not have a lot of experience writing siding estimates or how to get insurance siding jobs approved. Another obvious reason is that contractors are too busy to write new Xactimate Estimates for all of their jobs. Or they’re simply not that good at writing supplements. This is especially true for siding contractors for whom siding installation is a small percentage of their overall work. For these contractors especially, a supplementing company can help ensure that newly hired sales reps are producing profitable siding jobs.
Check out our blog posts dedicated to supplementing.