Estimating, Loss Valuation, and Claim Documentation
Building a defensible estimate
Use an industry platform (Xactimate is standard in Texas) and build from quantity takeoffs, not guesses. Every line item needs a quantity, a unit, a unit price, and a justification. Separate labor, material, and equipment; include tear-out, disposal, permits, and code-required upgrades (ordinance or law coverage) where the policy provides them.
Roof math you must know
One square = 100 square feet of roof area. Measure the footprint, apply the pitch multiplier, then add waste (typically 10% for simple gable roofs, 15% for complex hips and valleys). Include ridge, hip, valley, eave, and rake in linear feet, plus starter, drip edge, and vents. Steep-slope and two-story charges apply above the thresholds set in the pricing platform.
Valuation rules
Replacement cost = what it costs today to repair or replace with like kind and quality. ACV = replacement cost minus depreciation (physical, functional, economic). Use recoverable depreciation that is released on completion of repairs; non-recoverable depreciation reduces the final payment. Deduct betterment when the insured receives new-for-old on items not fully depreciated. Overhead and profit is generally added when three or more trades are required; some insurers resist it on cosmetic-only losses. Contents are valued by replacement cost or fair market value per the policy.
Documentation package
Photographs, measurements/sketches, moisture maps, itemized estimate, receipts, contractor bids, and a personal property inventory with age, quantity, and price. Nothing in the file should be a number you cannot source.
Traps
Forgetting waste and ridge/hip on roof estimates, double-charging O&P on subcontracted lines, and claiming full RCV when the policy pays ACV first.
Rule of thumb
If your estimate is challenged, the winning argument is never the total - it is the quantity. Show the tape measure, the pitch, the waste factor, and the multiplier.