If you’re new to the roofing business or just getting into storm restoration, you’ve likely heard the word “supplement” (or Supplement) thrown around but probably don’t have a good grasp on what it means. Let’s walk through what a supplement is and how supplementing will benefit your roofing company.
What is a supplement?
A roofing supplement or contractor supplement is when a contractor asks for additional materials, labor, or trades to be added to the insurance claim. An adjuster may not include enough shingles, ice and water shield, siding, etc. on the scope of loss to get the job done correctly. In some cases, these missing items are required by local building code. When this happens, a contractor writes a new Xactimate Estimate to include those missing items and submits it to the insurance company for approval. Contractors must also include supporting documentation such as photos, measurements, local code requirements, and invoices to explain why these funds are needed.
Why should you supplement?
Well, the simple answer is so you get paid what you deserve.
While we don’t believe the insurance company is the enemy, they sometimes make mistakes. It’s up to the contractor to find and correct those mistakes, not just for their business but also for the homeowner. Homeowners hire roofing contractors to be the expert on filing, settling, and managing insurance claims. Supplementing is a great opportunity for roofing contractors to demonstrate their expertise. When done correctly, it can improve customer service and even generate more referral leads.
How many of your jobs should you supplement?
You should review all your jobs to see if there is a need to file a supplement (there usually is). Supplementing roofing jobs is all about consistency and process. Having a standardized process for more thorough inspections makes it easier to determine if an insurance job requires a supplement and makes it easier to file one.
The best way to do this is to give your sales reps very clear rules on how ALL roof inspections are performed. Top contractors use inspection checklists and photo checklists to make sure they correctly document all of the damage and materials required to install the job. The person putting together your supplements will then compare the adjuster’s scope of loss to the inspection checklist and photos taken by the rep to see if there are any discrepancies.
While this type of process may add an additional 15-30 minutes to what your sales reps are currently doing, it will benefit your roofing business in several ways. In terms of supplementing, contractors will earn more money and get paid faster. When it comes to operations, the same process used for supplementing can also result in more accurate material orders and prevent “fire drills” like driving to a supplier to pick up materials when a crew is waiting on the roof.
How much can supplementing really make you?
At the end of the day, supplementing is like anything else – you get what you put into it. Roofing Contractors will typically earn $2,000-$6,000 per job when they supplement. That means a possible 10-25% increase in yearly revenue.
This increase in revenue means you get paid what it actually costs to do the job correctly. You spend time and money to make sure you have the right amount of material, follow local building codes, use installation best practices to comply with manufacturer warranties, etc.
Even the insurance carriers agree you should be paid for those things. But the catch is, you must ask for it. Bottom line, if you’re not taking the time to supplement, you’re losing money on every single job.
Why should you consider a 3rd party supplementing company?
It takes time to learn the intricacies of supplementing. You need to know Xactimate and Symbility, code items in your area, how to document and so on and so forth. AND you have to learn how to ask for supplements using the carrier’s language. Now, some contractors have the time, dedication, and staff to do it on their own. More power to them.
But if you’re a small roofing company or a contractor just getting into insurance restoration, you may not have the time to do it yourself. After all, storm roofing is all about sales. Anything that takes you away from sales hinders your revenue and business growth.
You need somebody on your side who has a solid background in supplementing and gives you all the tools you need to get the supplements approved. If that is the case for your business, using a supplementing company is a good option for you.
