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5 Tips for Faster Supplement Approvals

One of the most time consuming parts of working with insurance companies is the back-and-forth that can be involved when trying to get a supplement approved. Estimate Fox works with insurance companies on a daily basis and has compiled 5 tips to help you write a supplement that will be approved faster.

1. Separate supplemental charges

One of the easiest ways to speed up an insurance payment is to help the adjuster know what additional charges are you requesting. There are several ways to accomplish this such as providing an estimate with only the supplemental charges, bolding the supplemental charges, or putting the supplemental charges at the end of the estimate. These small tweaks in how the estimate is presented can lead to a much faster approval time and will also allow you to easily reference additional charges.

2. Send bid item copies

When providing a general contracting estimate, provide the insurance company with the quotes used for specialty items. For example, the insurance company may have used a generic price of $1,500 to remove solar panels on a roof before the start of the roofing project. If you received a $2,700 quote from a sub contractor that specializes in solar panels, it is beneficial to provide that bid along with your estimate to the insurance company. Showing the bid to the adjuster will help substantiate the higher price being requested. Don’t forget to add your overhead and profit to the estimate on the bid items.

3. Notate number of dehumidifier and air mover units

It is important to note how many dehumidifiers and air moves were used in each room if you are submitting a water mitigation invoice to the insurance company. For example, if you are charging for 12 units at a price of $25/unit per day, it will be beneficial to show, 4 units at $25/day for 3 days. Without having the information notated, the insurance company may question if this was 1 unit for 12 days or 2 units for 6 days and so on.

4. Use 10% overhead and 10% profit

A standard amount of overhead and profit that most insurance companies will approve is 10% each. There are exceptions to this rule such as the Greater D.C. area (Northern Virginia, D.C., Suburban Maryland) and the San Francisco metro where 15% overhead is allowed. Of course, check with the insurance company you are working with to find out what their standard is to prevent delays and supplement rejection.

5. Provide explanation for labor hours

If you separate your labor and materials on the supplement, provide an explanation on the labor amount. For example, notate 5 workers for 10 hours to help show how you arrived at the amount. Transparency will help build trust with the adjuster that is reviewing it for approval and can result in a faster approval. When using estimating systems such as Xactimate®, it is important to remember many of the line items already include material and labor on this system so you will want to provide a note on the line items for labor only. There are situations that rightfully require the use of labor hours but the insurance companies will likely want an explanation and it will prevent delays with getting the charge approved.

We hope this help makes your job easier. For help with estimating or insurance communications, remember that Estimate Fox is a reliable partner that can handle storm workload surges or daily outsourcing. Create your free account at to get started with your online portal where you can submit new projects and follow up on the status of them 24/7!