Insurance Estimates vs Non-Insurance Estimates

Thursday, May 14, 2015Sean Ritchie

In today’s day and age, most insurance estimates are put together using Xactimate, Colossus, or a similar estimating program. This software provides contractors with set pricing based on material and labor costs – these figures are updated on a monthly basis and vary based on geographical location. Estimating programs are used to settle an insurance claim and place a dollar value on work that needs to be completed.

Programs such as these provide great accuracy and speed – two things which are very important when we report a loss. They are detailed, professional-looking and help the contractor, insurance company and client overcome any language barriers.

When we deal with non-insurance estimates, it is best to gather subcontractor bids, and/or labor and material costs. In this situation we set the price and scope of repair based more closely on a client’s wants and needs. Rolyn, as the reconstruction contractor, has more flexibility and control in building this type of estimate. In most cases we are competing with other bids, so it’s important that our figures are not just accurate, but also competitive.

The ability to price projects both ways enables us to offer our clients the best value. The insurance estimate is fixed and factors in all items and work needed to be done. Non-insurance estimates can vary since the process is more subjective. Knowing when to apply different estimating techniques helps us best serve our clients.

About the Author

Sean Ritchie
Vice President, Construction

In a crisis, you need rapid response from a company with the skills and experience required to handle any type of disaster.

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