Why the gap exists
Carrier pricing approach
- Xactimate mid-market pricing
- Standardized assumptions
- Commoditized scope
Contractor pricing approach
- Post-event surge pricing
- Specific job complexity
- Profit margin
- Market-based bidding
Common gap drivers
- Labor rates (contractor higher in post-event markets)
- Material surcharges (supply chain pressures)
- Mobilization and access
- Job-specific complexity
- Minimum-project pricing
Reconciling the gap
Document current market
- Multiple contractor quotes
- Supplier pricing
- Labor market evidence
Work with the adjuster
- Explain the specific contractor scope
- Identify line-item differences
- Negotiate adjustments
Escalate if needed
- Supplemental filing with additional evidence
- Appraisal when amount-only dispute
- Mediation for flexibility
Consider contractor negotiation
- Contractor may adjust for insurance-scope alignment
- Contractor carries market-pricing risk
- Contractor-carrier direct negotiation sometimes possible