If you've been in roofing more than a season, you've probably heard the term "supplement." But for contractors new to insurance work, or for anyone who's been doing it informally and wants to understand the process better, here's a plain-language explanation of what an insurance supplement is and why it matters.
What Is an Insurance Supplement?
When a homeowner files a roof insurance claim, the insurance company sends an adjuster to inspect the damage. The adjuster writes a scope of work — a line-by-line description of what they believe needs to be repaired or replaced — and the resulting estimate becomes the basis for the insurance payout.
The problem: adjuster scopes are often incomplete. They miss line items. They use outdated prices. They leave out code-required upgrades. They don't include overhead and profit for the roofing contractor.
A supplement is the formal process of going back to the insurance company and requesting additional payment for items that were omitted or underpriced on the original scope. It's not a dispute — it's a correction. You're documenting what the job actually requires and asking the carrier to pay for it.
Why Initial Scopes Are Almost Always Incomplete
Insurance adjusters handle dozens of claims at a time, often in different trades, and they use software (typically Xactimate) that defaults to regional average prices. This creates predictable gaps:
- Missing line items: Starter strip, drip edge, ice & water shield, ridge cap, and pipe boots are frequently left off — especially by desk adjusters who never get on the roof.
- Code upgrades: If local building code requires a new item that wasn't on the original roof (like self-adhering underlayment or specific ventilation), the adjuster may not include it.
- Overhead & profit (O&P): General contractors are entitled to O&P (typically 10% overhead + 10% profit, or "10 and 10") when they're coordinating multiple trades. Many adjusters omit it and require you to request it.
- Depreciation on materials: Many policies start with ACV (actual cash value) and require a supplement submission to recover the full RCV (replacement cost value) after the job is complete.
- Pricing discrepancies: Xactimate prices are updated quarterly but may lag real market costs — especially for materials after a regional storm that spikes demand.
The Supplement Process
Here's the basic sequence:
- You inspect the property and write your own scope of work, often with Xactimate or a comparable estimating tool.
- You compare your scope to the adjuster's scope and identify the gaps.
- You document the missing items — with photos, measurements, and code citations if needed.
- You submit a supplement letter to the adjuster, listing each disputed or missing item with documentation and a requested dollar amount.
- The adjuster reviews and (ideally) approves additional payment. Sometimes they counter-offer. Sometimes you escalate.
- Once approved, the carrier issues a supplemental check to the homeowner (or directly to you, depending on the policy).
How Much Money Is at Stake?
On a typical residential roofing claim, a properly supplemented job might recover an additional $1,500 to $5,000+ compared to an initial adjuster scope — sometimes more on larger jobs or when O&P has been omitted entirely. For a contractor running 50+ claims per year, a strong supplement process can represent $75,000 to $250,000 in additional revenue that would otherwise be left on the table.
Supplements vs. Public Adjusters vs. Attorneys
Roofing contractors can supplement claims directly — you don't need a public adjuster or attorney. Most claims are handled contractor-to-adjuster with supporting documentation. Public adjusters and attorneys get involved when carriers deny legitimate claims or the dispute escalates past what a supplement letter can resolve. For the large majority of supplement requests — missing line items, O&P, code upgrades — a well-documented letter from the roofing contractor is enough.
The Difference Between ACV and RCV
Most homeowners have replacement cost value (RCV) policies, which means the carrier pays the full replacement cost after the work is done. But the initial check is typically for ACV — the replacement cost minus depreciation. The contractor completes the work, submits proof of completion, and the carrier releases the remaining depreciation (called "recoverable depreciation").
This is distinct from the supplement process, though both involve going back to the carrier after the initial scope. A supplement adds line items. Recoverable depreciation releases withheld funds on items already in the scope.
Why This Matters for Your Business
If you're doing insurance restoration work without supplementing, you're completing jobs for less than their full cost. You may not notice — especially on smaller jobs or when margins are thick — but at scale, it compounds. A contractor doing $2M in insurance work annually who doesn't supplement is typically leaving $200,000 to $400,000 of legitimate recovery on the table.
More importantly: the supplement process is legitimate. You're not inflating claims. You're documenting actual scope and asking to be paid for actual work. Adjusters expect supplements. Learning the process — and building it into your workflow — is one of the highest-leverage moves for an insurance restoration contractor.
Further Reading
- Roofing Insurance Supplements: The Complete Contractor's Guide — Hub article covering the full supplement workflow from documentation to tracking
- Insurance Supplement Items Adjusters Miss — The specific line items to check on every claim
- Ketterly for Insurance Restoration Roofing Companies — How Ketterly tracks supplements, claims, and production across your full book of business