Preparing Supplements & What Qualifies as a Supplement?

Although I talk a big talk I am relatively new at Insurance Work (less than 15 months). So After completing a Substantial Restoration Project there are some issues pertaining to Submitting my Final Invoice in regards to the Estimate compared to my Actual Costs. This lack of knowledge process has undoubtedly cost me thousands left on the table over the last year.


Sheetrock, hung, and finished $700.00 on Estimate prepared by Adjuster.
My costs were materials $400, In house hanging labor-16 hours @ $55 = $880, I Sub-Contracted finishing $1,200, The difference being $1,780 + O & P (already agreed) $178 + $178 totaling $2,136.00.

Slightly different scenario…Siding materials were also calculated @ $700 and Material Invoice reflects $1,300.

Should I expect the difference?

My thoughts on approach-

Delete Line Item 22, 34 ect.
Actual Costs- As well as attaching Invoices? Or are the Invoices not required, but available along with Returned Check (Taper didn’t actually write me a Invoice, I just wrote the check and memo’d the job as reference).

Not to upset Larry but does Xactimate have this option for actual costs incurred? Does yours Larry?

In retrospect, I have always enjoyed the ease of agreeing a cost prior to work commencing instead of a Final Invoice.

Thank you in advance-

95% of the time we reach an agreed price before we start the work. If you know your costs are not going to be covered on the front end why would you chance losing out on proper payment for the work.

There are situations where the insurance companies even with fact presented in black and white refuse to reach an agreement either because of ignorance or some other reason.

I recently had 2 claims that the information was presented prior to starting the work and the insurance companies refused to honor the line items that were neeeded to complete the job. I am having to supplement much of the work required to complete the job. This will be an uphill task with one of the jobs because the homeowner hasnt a clue as to real world costs. The 2nd will be a little easier because the insurance company tried to screw them and they are on our side. Basically both have a situation where the insurance company has left them less than indemnified and I will follow through to forclosure if I have to to collect what I am owed.

You will run into this too. However, if you try to take the time and supplement the job on the front end you will undoubtedly do better overall. Supplementing on the front end definately takes more time than just agreeing to do the work. You could add 10% to 50% to each job. Never Never Never agree with an adjuster on site. There are always details missed when a person hurries through an estimate.

Thank you ALLTEX.

I am typically just as I say- reach a agreement then. There are times like these when I get a Filtered Estimate where it fell short of my costs being that the reason for supplement.

Does Xactimate have adjustment options to close out a job, quite possible adjust line items to real costs?

I’m on a MAC, and downloading Windows so as I can Operate with Xactimate, got some time for it all to work- and I want to Invoice this Project out and be paid!!

Not typically. You will have to make single line entries for sheetrock or any other trade work. You can do it per room or per trade. Sometimes its easier per room.

Insurance company allowed $123.00 for repairs. It took 800 to complete the repairs. You then do a misc write in line item for the difference. When you enter the price you can select overhead and profit as well as taxes. Makes for an easy way to handle the work. It would be alot easier to discuss over the phone. PM me your number and we can chat.

Thank you for that- I have been trying to get my Mac to run Xactimate but to no avail. I will be shopping later today for a PC with Windows- (in a lap top form) and if anyone has any suggestions I’m open…

Alltex- I will most likely be taking you up on that offer once I’m a subscriber!