Getting Multiple Contractor Estimates: A Step-by-Step Guide
Why multiple estimates matter
A single estimate gives you one data point. Three estimates give you a range that shows what the market considers a fair price for your repair. If all three contractor bids are significantly higher than your insurance estimate, you have strong evidence that the insurance number is too low.
If one bid is much higher or lower than the others, you can investigate why. Multiple estimates protect you from overpaying and from accepting an underpayment.
How to request estimates
Contact three licensed contractors who have experience with insurance repair work. Provide each one with a copy of your insurance estimate so they can see what was scoped. Walk through the damage with each contractor and ask them to identify any items they believe are missing.
Request that their estimate be detailed with individual line items, not just a lump sum. A line-item estimate is the only type you can meaningfully compare to your insurance scope.
What to compare
Compare the scope of work first, then the prices. Check whether each contractor includes the same tasks and materials. Look for items that one contractor includes but others do not, as this may indicate something important that was missed.
Compare material grades to make sure everyone is pricing the same quality level. Look at the total, but also compare individual line item prices to identify where the biggest differences are.
Understanding bid variations
It is normal for contractor estimates to vary by 10-20%. Larger variations usually mean the contractors are scoping different work. One may include subfloor replacementSubfloor Replacement After Water Damage: What You Need to KnowWhen water saturates your flooring, it often damages the subfloor underneath. Subfloor replacement is one of the most commonly omitted items in wat...
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One may price semi-custom cabinets while another prices stock. These differences are more important than the total dollar amount. The most thorough, detailed estimate is usually the most accurate, even if it is not the highest or lowest.
What to do
Get estimates from at least three contractors before starting repairs. Give each contractor the same information and access to the property. Ask each one to explain any differences between their estimate and the insurance estimate.
Use the most thorough contractor estimate as the basis for any supplemental claims to your insurer. Do not automatically choose the lowest bid. Choose the contractor whose scope is most complete and whose communication gives you confidence in the project.
See how this applies to your property
Upload photos of your damage and get a detailed analysis showing exactly where your estimate may fall short.