Insurance Offered Less Than My Water Damage Repair Estimate: Appraisal Clause or Public Adjuster?
Insurer's offer is far below your contractor's estimate? How to compare the two line by line, then supplement, invoke appraisal, or hire a public adjuster.
Before you invoke appraisal or hire a public adjuster, put the two estimates side by side and find out why they differ.* Most gaps between an adjuster's number and a contractor's number come from four places: scope (what's being repaired), unit pricing, depreciation that's being held back, and the deductible. A written supplement that closes the scope gap often moves the number without a fight. Appraisal and public adjusters are the next steps when a documented supplement doesn't. A homeowner asked us this after a tree came through their roof: the contractor quoted about $46,000 and the carrier offered about $28,000. Here is how we'd work that gap.
Water claim with a low estimate? Call 24/7 · (801) 948-2501.
This is general information from a Utah mitigation company. It isn't legal advice, and nothing here promises a claim will be paid. For your rights under a specific policy, talk to the Utah Insurance Department or an attorney.
Why is the insurer's estimate so much lower than my contractor's?
Lay the two estimates next to each other, line by line. On Keystone's Salt Lake County water jobs, the gap is almost always in one of these:
| Where the gap usually is | What it looks like |
|---|---|
| Scope | The adjuster's estimate dries and repaints one wall; the contractor's removes two feet of drywall on three walls, the base, and the pad. Scope is the biggest and most fixable gap. |
| Line-item pricing | Both use Xactimate, but with different price lists, labor minimums, or waste factors. |
| Depreciation | On a replacement-cost policy, the first check is often actual cash value (ACV). The "recoverable depreciation" is paid after the work is done and receipts are submitted. A $46k scope can show as a $28k first payment for this reason alone. |
| Deductible | It's subtracted from the payment, not from the estimate. |
| Sublimits | Mold, sewer backup, and sometimes contents or additional living expenses (ALE) may sit under a separate, smaller limit. |
We see this on Keystone jobs regularly. On a Cottonwood Heights job with a leaking drain pipe, the adjuster wrote the estimate off his initial scope, before our demo was done, and the number was well under what the job actually took. We submitted the moisture log, photos and the final invoice, and the carrier cut a second check to the homeowner.
> "The most common reason an adjuster's estimate comes in low is that it was written before we finished our demo. Once the walls are open, the scope changes, and the estimate has to catch up." > — Seth Saxton, WRT, AMRT, ASD, FSRT, OCT, Keystone Restoration (IICRC Certified Firm #70266523)
Ask the adjuster for the full estimate in writing, including the depreciation and deductible math. Under Utah's claims-settlement rule, an insurer has to be able to explain how a payment amount was calculated and may not deny any part of a claim based on a policy provision without citing it. That gives you the right to ask "which line, and why?" on every item that's missing. How Xactimate estimates work explains how to read the format.
One thing that's often not in the repair estimate at all: the mitigation invoice. On a water claim, mitigation and repair are usually paid separately. If you're comparing a repair-only estimate to a contractor quote that includes drying and tear-out, you're not comparing the same thing. The mitigation bill wasn't in the adjuster's estimate covers that.
What if the adjuster's estimate came in under my deductible?
Another homeowner asked after a storm: the carrier's estimate was below the deductible, so the payment was zero. That is usually a scope problem, not a coverage decision. The adjuster saw less damage than exists. The fix is the same as below: document what the adjuster didn't see, get it into a supplement, and ask for a re-inspection. A below-deductible estimate is not a denial, and it doesn't close the claim.
What is a supplement, and should I do that first?
Yes, almost always first. A supplement is a written request to add items the original estimate missed, with proof. Your contractor writes it in Xactimate; you send it with:
- Photos and, for water, moisture readings showing the material was wet
- The reason each item is necessary (the IICRC S500 drying standard, a code requirement, matching flooring that can't be patched)
- Receipts for anything already paid
Ask for a written response. Many underpaid claims settle at this step because the adjuster simply didn't have the evidence. Keep it factual; a supplement is not a complaint letter. On the Cottonwood Heights job above, that packet, not an argument, is what produced the second check.
How does the appraisal clause work?
Most homeowners policies include an appraisal clause for disputes over the amount of a covered loss. Under the standard ISO homeowners wording:
- Either side demands appraisal in writing.
- Each side picks a competent, impartial appraiser within 20 days.
- The two appraisers choose an umpire. If they can't agree on one within 15 days, either side can ask a court to appoint one.
- The appraisers set the amount of loss. If they agree, that's the number. If not, the umpire decides, and any two of the three set the amount.
- Each side pays its own appraiser; the umpire's cost is split.
Appraisal is for how much, not whether. If the carrier is saying the loss isn't covered at all, appraisal is usually the wrong tool; see what to do when a claim is denied as a long-term leak. Check your own policy's wording; the day counts above are from the standard form and your policy may differ.
What does a public adjuster do, and what does one cost?
A public adjuster (PA) works for you, not the carrier: documents the loss, writes the estimate, and negotiates. In Utah, PAs must be licensed by the Utah Insurance Department, and as of 2026 carriers are required to verify that license when you hire one. Utah rules also require a PA contract to show, in bold on the signature page, that you can rescind within 10 days and that you don't have to hire a PA to make a claim. The contract has to state the fee clearly, usually a percentage of the settlement; Utah doesn't cap the percentage, so compare quotes. A PA can't collect a fee if the carrier pays or commits in writing to policy limits within 72 hours of the loss report, and can't have an ownership interest in the repair company.
Rule of thumb: a PA makes sense when the gap is large relative to the fee and you've already tried a supplement. Verify any PA's license on the Department's licensee search before signing.
What order should I do this in?
- Get the carrier's full estimate in writing, with depreciation and deductible shown.
- Compare line by line with your contractor's estimate. Separate scope gaps from pricing gaps.
- Supplement with photos, moisture data and receipts. Ask for a written response and a re-inspection if needed.
- Ask about recoverable depreciation and ALE or contents sublimits so you know what's actually in dispute.
- Invoke appraisal if the dispute is about the amount, or hire a licensed public adjuster if you want someone to run the claim for you.
- File a complaint with the Utah Insurance Department if the carrier won't respond or won't put its reasons in writing.
When should I call a mitigation company?
Before the estimate fight, not after. Drying can't wait for a settlement, and the moisture log and photos from a proper dry-out are the evidence that wins the supplement later. What proper remediation looks like shows what to expect in that file.
What's not included: Keystone Restoration handles the mitigation (extraction, tear-out, drying, documentation) and supplies the moisture data and photos your estimate dispute runs on. We aren't public adjusters, appraisers or attorneys. Rebuild is done by our sister company, Keystone BuildWorks.
Need the drying done and documented while the claim is sorted out? Call 24/7 · (801) 948-2501.
Questions about your specific situation? Talk to us — advice is free, 24/7.