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 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.
About 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
Because partial approval roofing and siding supplements have such a large revenue upside, it makes sense to supplement all of them. Experienced roofing contractors will know from the inspection if the house has sustained enough damage to warrant a claim. That, combined with proper documentation will allow the contractor to easily know which partial approvals to focus on fighting and which ones to shift to retail jobs if the homeowner still wants a full replacement.
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.
For more supplementing content, check out the following pages.