How to Dispute an Insurance Underpayment on a Roofing Claim

What Is an Insurance Underpayment?

An insurance underpayment occurs when the carrier's estimate does not include the full scope of covered work. This can mean:

Missing line items — Items that are required by code but absent from the estimate

Underpriced items — Line items that are present but priced below standard Xactimate rates

Incorrect quantities — Square footage, linear footage, or unit counts that are too low

Wrong depreciation — Excessive withholding of recoverable depreciation

Underpayments are not necessarily bad faith. In most cases, they result from adjusters writing estimates quickly from aerial imagery without on-site inspection.

Your Rights as a Policyholder

Under your homeowner's or commercial property policy, you have the right to:

Request a re-inspection — Ask the carrier to send a different adjuster

Submit a supplement request — Formally document the missing items and request payment

Invoke appraisal — Many policies include an appraisal clause that allows both parties to hire independent appraisers

File a complaint — State insurance departments have complaint processes for underpayment disputes

As a contractor, your client has these rights. Part of your value as a contractor is helping them exercise those rights.

Step-by-Step: Disputing a Roofing Underpayment

Step 1: Review the carrier estimate

Get a copy of the carrier's Xactimate estimate. Read every line item. Note what is included and what is missing.

Step 2: Identify the gaps

Compare the carrier estimate against:

IRC requirements for your state

Manufacturer installation guidelines

Xactimate's standard pricing database

Any local building codes or amendments

Step 3: Document with photos

Take photos of every item you plan to supplement. For each missing line item, you should have:

A photo showing the area affected

A photo showing the existing condition

Notes on measurements

Step 4: Write a supplement letter

A supplement letter is a formal written request citing the specific code or industry standard that requires each missing item. [Read the full supplement letter guide →](/blog/supplement-letter-template)

Step 5: Submit and follow up

Submit the supplement to the carrier's claims department — not the original adjuster. Include:

Your supplement letter

Supporting photos

Printed code sections

Manufacturer installation guides

Follow up in writing every 7–10 days.

Step 6: Negotiate or escalate

If the carrier denies reasonable items:

Request a re-inspection by a supervisor

Invoke the appraisal clause if available

File a complaint with the state insurance department

Consider hiring a public adjuster

The Role of Documentation in Dispute Outcomes

The single biggest factor in supplement approval is documentation quality. Carriers approve supplements with specific code citations at a much higher rate than supplements with vague language.

The difference between "drip edge is required" and "drip edge is required per IRC R905.2.8.5, which was adopted by [state] effective [date]" is significant.

Let EstimateDelta Build Your Documentation

[EstimateDelta](/pricing) analyzes the carrier estimate, identifies every gap, and generates a supplement letter with exact code citations for every missing item.

Your dispute starts with better documentation.

[Analyze your estimate →](/pricing)