Why Two Estimates for the Same Insurance Claim Can Be Thousands of Dollars Apart

Why the scope of damage matters just as much as the price of repairs

For example, imagine your home suffers significant water damage.

One estimate says the repairs will cost $228,000.

Another says $247,000.

That is almost a $20,000 difference for what looks like the same loss.

Most homeowners would naturally wonder how two people could look at the same property and come up with numbers that far apart.

The answer is often not simply the price of labor or materials.

It may be what each person believes is necessary to complete the repairs.

In insurance claims, that is often referred to as the scope of loss. In plain English, it is the detailed list of work needed to repair the damage.

Here is a clear description of Scope of Loss from United Policyholders (UP), a non-profit 501(c)(3) whose mission is to be a trustworthy and useful information resource and a respected voice for consumers of all types of insurance across the United States. They don’t sell insurance or take money from insurance companies. They give you the straight scoop….Guide you on buying insurance and navigating claims…Fight for your rights.

And that scope of loss list matters just as much as the prices attached to it.

Ideally, you shouldn’t have to get to the point where you’re trying to figure out why two estimates are so far apart. Understanding how estimates are built also helps explain why we believe a public adjuster can be most helpful when involved from the beginning.

Start With the Work, Not the Number

Take a water-damaged kitchen.

You may walk in and immediately see wet flooring and damaged drywall. But repairing that kitchen may involve much more than what you can see.

Are the cabinets damaged? Does the countertop need to be removed to work on them? Is there damage behind the cabinets? Does insulation need to be replaced? Do appliances have to be disconnected and moved?

And once damaged materials are removed, what has to be done to put everything back together?

Those questions all affect the estimate.

So when one estimate is $228,000 and another is $247,000, looking only at the totals does not tell you very much.

The better question is:

Are both estimates actually including the same work?

A Difference in Scope Can Create a Big Difference in Price

Suppose one estimate includes replacing 2500 square feet of flooring and another includes 2900 square feet.

Even if both use exactly the same price per square foot, the totals will be very different.

That is not really a disagreement about the price of flooring. It is a disagreement about how much flooring needs to be replaced.

The same thing can happen with drywall, paint, cabinets, insulation, trim, roofing and other repairs.

The differences can add up quickly.

The Repair May Involve More Than What Was Damaged

If water damaged drywall behind built-in kitchen cabinets, you cannot repair the wall without getting to it. That may mean removing cabinets or a countertop, repairing the wall and then putting everything back.

The same thing can happen when plumbing inside a wall needs to be accessed. The wall may have to be opened and later repaired, textured and painted.

There can also be differences over whether something should be repaired or replaced.

One person may believe part of a cabinet system can be repaired. Another may believe more extensive work is necessary. Similar questions can arise with flooring, roofing, countertops, doors, trim and other materials.

These decisions can make a significant difference in the final estimate.

Small Things and Measurements Matter Too

Property repairs involve many individual steps.

Furniture may need to be moved. Appliances may need to be disconnected and reconnected. Baseboards may need to come off and go back on. Fixtures may need to be removed and reset. Areas that aren’t being repaired may need protection. Debris needs to be removed.

One missing item may not change an estimate very much. A number of smaller items can.

Measurements matter too.

One estimate may show 1600 square feet of flooring while another shows 1725. Room dimensions, roof measurements, and linear feet of trim can all differ.

Sometimes the issue isn’t what something costs.

It’s what is being included in the first place.

Not All Damage Is Visible Right Away

You may not be able to see the full extent of property damage during the first inspection.

Water can travel underneath flooring, behind cabinets and inside walls. Sometimes additional damage isn’t discovered until materials are removed.

An estimate is based on the information available at the time it is prepared. If additional damage or necessary work is discovered later, the scope and estimate may need to be updated.

This is one reason documentation from the beginning is so important.

Photographs, video, measurements and detailed records can help preserve what the property looked like before conditions change.

Of course, necessary steps to protect the property from further damage should not be delayed simply for documentation. The point is to document what you reasonably can while also taking appropriate steps to protect the property.

So Which Estimate Is Correct?

The higher estimate is not automatically right.

The lower estimate is not automatically right either.

One may include more necessary work. Additional information may be needed. Or two experienced people may simply disagree about what repairs are required.

What matters is understanding the reason for the difference.

If you ever find yourself looking at two very different estimates, understanding what is behind the numbers can help explain the difference.

Are the same areas included? Are the measurements the same? What is being repaired and what is being replaced? What has to be removed to reach the damage? What has to be put back afterward? Is work included in one estimate that doesn’t appear in the other?

You may discover that the two estimates aren’t actually estimating the same job.

But ideally, we believe the scope of the loss should be carefully developed and documented from the beginning rather than waiting until there are two very different estimates and trying to determine why.

Getting the Scope Right From the Beginning Matters

At AJR Public Adjusters, we would much rather see a significant property loss at the beginning than be called months later when conditions have changed and everyone is trying to figure out why the estimates are so different.

The property itself is where we want to start.

When we’re involved early, we can inspect the damage, photograph and measure it, review the policy, document the loss and develop a detailed scope and estimate based on our inspection.

We want to start with the property, not someone else’s number.

Our preference isn’t to come into a claim after the fact and simply compare our number with someone else’s. We would rather have the opportunity to inspect and document the loss ourselves from the beginning.

Our job is to document the damage, develop a detailed scope and estimate, and properly present the claim to the insurance company based on the policy.

Why Experience Matters From the Start

Bruce Horowitz, has been adjusting property insurance claims for more than 38 years.

Experience does not change the damage. It changes what you know to look for.

And experience doesn’t mean automatically including more. It means knowing what questions to ask and what details need to be considered.

A homeowner may walk into a damaged kitchen and see wet flooring and damaged cabinets.

An experienced adjuster may also be thinking about what is underneath the flooring, what is behind the cabinets, what needs to be removed, what has to be disconnected and what will have to be put back when repairs are finished.

Those questions are much easier to address while the conditions can still be observed and documented than months later after the property has changed and repairs have begun.

That is why we encourage property owners to consider whether they want professional representation at the beginning of a significant property loss.

You do not need to wait for the insurance company to prepare its estimate.

You do not need to wait until you disagree with that estimate.

And you do not need to wait until the claim becomes frustrating.

As early as possible, before conditions change and the claim gets too far underway, that is the time to decide whether you want someone representing your interests in the adjustment of the loss.

If you’re considering hiring a public adjuster, the beginning of the claim is the best time to make that decision.

AJR Public Adjusters offers an initial consultation at no charge. We can discuss what happened and whether having us involved from the start makes sense.

AJR Public Adjusters
602-795-5227
publicadjusteraz.com

About the Author

Stacy K. Horowitz is co-owner and manager of AJR Public Adjusters, LLC, which she operates with her husband, Bruce L. Horowitz. Bruce has more than 38 years of property adjusting experience, and AJR has represented Arizona property owners for more than 13 years.

Stacy writes about property insurance claims to help Arizona homeowners and business owners better understand a process most people know very little about until they experience a loss themselves.

This article is for general educational and informational purposes only. It is not legal or insurance coverage advice and does not guarantee coverage or the outcome of a claim. Every insurance policy and claim is different.

Understanding Public Adjusters: When to Hire One

How Public Adjusters Maximize Your Insurance Claim

Most people don’t think about their insurance policy until something goes wrong.

One day everything is fine. The next, you’re standing in six inches of water from a burst pipe, looking at a hole in your roof after a monsoon storm, or trying to figure out where you’re going to sleep after a fire.

In those moments, filing an insurance claim can feel like being dropped into the middle of a game without knowing the rules.

You know you’ve been paying premiums for years. You know you have coverage. But suddenly you’re faced with inspections, estimates, depreciation, policy language, contractors, deadlines, and paperwork that might as well be written in another language.

That’s where a Public Adjuster comes in.

What Is a Public Adjuster?

A Public Adjuster is a licensed insurance claims professional who works exclusively for the policyholder, not the insurance company.

Think of it this way.

If you were facing a serious legal issue, you wouldn’t expect the other side’s attorney to protect your interests.

The same principle applies to an insurance claim.

The insurance company sends an adjuster to evaluate the loss on its behalf. A Public Adjuster works on your behalf..

Their job is to investigate the loss, document the damage, understand the policy, prepare estimates, and help present and negotiate the claim.

In many ways, a Public Adjuster acts like a guide through unfamiliar territory. When you’re lost in the woods, a map is helpful. A guide who has walked the trail hundreds of times is even better.

Why Do People Hire Public Adjusters?

Most homeowners file only a handful of insurance claims in their entire lives.

Insurance companies handle claims every single day.

Imagine playing your first game of chess against someone who has played thousands of matches.

That doesn’t mean the game is unfair. It simply means one side has far more experience.

That’s why many policyholders choose professional representation.

They hire a Public Adjuster because they want someone who knows where problems typically occur, what documentation is needed, and what questions should be asked.

Many clients tell us they were surprised by how much damage wasn’t immediately visible.

A roof may look fine from the ground but have significant storm damage.

Water from a pipe break may travel behind walls, under flooring, and into cabinets.

Smoke from a fire can spread throughout a home like an invisible fog, affecting areas that never came into direct contact with flames.

Water Damage Claims: What You Can’t See Can Hurt You

Water is often compared to a slow-moving thief.

It doesn’t always announce itself.

It slips behind drywall, under flooring, inside cabinets, and into insulation.

A homeowner may see a water stain on the ceiling. What they don’t see is the moisture trapped above it.

Like an iceberg, the visible damage is often only a small part of the story.

That’s why thorough documentation and investigation are critical.

The Best Time to Hire a Public Adjuster

Many people wait until they hit a roadblock before calling a Public Adjuster.

The better approach is often to get help from the beginning.

It’s much easier to build a house on a solid foundation than to repair a crooked one later.

The same is true with insurance claims.

When damage is properly documented from day one, photographs are taken, evidence is preserved, and the claim is organized correctly, many future headaches can be avoided.

Once information is missed, items are discarded, or damage is undocumented, it can be difficult to go back and recreate what was there.

Need Help With a Property Damage Claim?
AJR Public Adjusters has represented policyholders for more than 38 years. Call 602-795-5227 for a free claim consultation.

What Makes a Good Public Adjuster?

Experience matters.

A lot.

You probably wouldn’t choose a surgeon who has performed a procedure twice over one who has performed it hundreds of times.

Insurance claims are no different.

Every claim presents new challenges, but experienced Public Adjusters have seen many of the same issues before. They know where hidden damage is often found. They know what documentation carriers typically request. They know how to navigate delays, questions, and disputes.

That experience can help policyholders avoid costly mistakes.

Why Homeowners and Business Owners Choose AJR Public Adjusters

For more than 38 years, AJR Public Adjusters has represented homeowners and business owners dealing with property damage claims.

Whether the loss involves a fire, water damage, storm damage, hail damage, theft, vandalism, or a commercial property claim, AJR works exclusively for policyholders.

Clients often tell us that one of the biggest differences they notice is communication.

A claim can feel like a roller coaster. There are inspections, estimates, requests for documents, contractor meetings, and constant questions.

AJR believes clients should never feel left in the dark.

That’s why communication remains a cornerstone of how we handle every claim.

With an A+ BBB Rating, extensive industry experience, and hundreds of satisfied clients, AJR Public Adjusters has earned a reputation as one of the most trusted Public Adjusting firms serving Phoenix, Scottsdale, Paradise Valley, Chandler, Gilbert, Mesa, Glendale, Peoria, and surrounding Arizona communities.

Need Help With an Insurance Claim?

If your home or business has suffered damage from water, fire, smoke, hail, wind, theft, vandalism, or an Arizona monsoon storm, AJR Public Adjusters can help.

For more than 38 years, AJR Public Adjusters has represented policyholders, not insurance companies. We help homeowners and business owners document their losses, understand their coverage, and navigate the insurance claims process.

AJR Public Adjusters A+ BBB Rated|Representing Policyholders for More Than 38 Years

📍 Statewide Arizona Public Adjusters Serving Phoenix, Scottsdale, Paradise Valley, Chandler, Gilbert, Mesa, Glendale, Peoria, Surprise, Tempe, Cave Creek, Carefree, Fountain Hills, Flagstaff, Tucson, Payson, Globe, Kingman, Yuma, Sierra Vista and communities throughout Arizona.
📞 Office: 602-795-5227
📱 Bruce Horowitz: 480-519-9099
📱 Stacy Horowitz: 480-519-9199
🌐 http://www.publicadjusteraz.com

Free Insurance Claim Consultation

Call us before speaking with contractors, signing repair agreements, or accepting a final insurance settlement.

Get Professional Insurance Claim Help Before It’s Too Late

^{Example Scenario:}

The Story of the Unseen Pitfalls:

It was a stormy night when Sarah’s home suffered significant damage. The winds were fierce; by morning, part of her roof had collapsed, her living room flooded, and several of her belongings were ruined. Devastated, she immediately called her insurance company to start the claims process. Confident that the process would be straightforward — after all, she’d paid her premiums for years, and the policy was supposed to cover this kind of damage — Sarah didn’t hesitate to make the call.

However, Sarah didn’t know that this initial contact with the insurance company was a critical moment in the claims process. She should have contacted the local NAPIA firm AJR Public Adjusters immediately before contacting her insurance company to ensure her interests were fully represented. By contacting the licensed local Arizona AJR Public Adjusters immediately, Sarah could have ensured that her damages were accurately documented, the full scope of loss was assessed, and the insurance company wouldn’t undervalue her claim.

The insurance company promptly sent an adjuster to assess the situation. Sarah explained everything: the roof, the water damage, and the items she’d lost. The adjuster seemed sympathetic, but his appraisal was quick and far less generous than Sarah expected. When the check arrived, it barely covered the cost of repairs, let alone replacing her valuable belongings or addressing the full extent of the damage.

Feeling frustrated but not knowing what else to do, Sarah accepted the settlement and started the repairs herself. However, as she began to fix the roof, she noticed more issues—structural damage that the insurance adjuster had missed. It quickly became apparent that she couldn’t restore her home to its previous condition without spending more than the settlement had provided.

A few months later, Sarah spoke to a friend, Jake, who had gone through a similar experience. He mentioned how he’d hired a public adjuster when his home was damaged in a fire. Jake explained that the public adjuster had fought for a fair claim, found hidden damages, and ultimately helped him secure a settlement covering all his repairs and losses.

It was then that Sarah realized the mistake she had made. By not hiring a licensed public adjuster right away, she had allowed the insurance company’s adjuster — who worked for them, not her — to determine what was fair. She hadn’t known her rights or the full extent of the damages. A public adjuster could have advocated for her and ensured the damage was thoroughly documented and assessed.

A Lesson That Applies to Many AJR Clients:

While Sarah is a fictional example, this story reflects a common experience shared by many of the clients AJR Public Adjusters works with. Often, homeowners find themselves in similar situations — facing low insurance payouts, missing damages, and mounting stress after a disaster. AJR Public Adjusters understands Sarah’s pitfalls and is here to help. As a BBB A+ rated company, AJR is committed to advocating for clients like Sarah, ensuring that every hidden damage is uncovered and that settlements genuinely reflect the extent of the losses.

An Example Demonstrating What Sarah Learned:

Insurance Adjusters Work for the Company, Not You: Sarah didn’t fully understand the role of the insurance adjuster until after the fact. While the adjuster appeared kind and professional, his primary responsibility was to protect the insurance company’s bottom line, not her interests. A public adjuster works for you, ensuring your damages are fully assessed and you receive a fair settlement.
Hidden Damages Matter: The insurance adjuster didn’t notice specific structural damage Sarah discovered. AJR Public Adjusters have the expertise to identify hidden damages that might not be obvious at first glance, ensuring that all the damages are accounted for.
You Have the Right to Negotiate: Sarah didn’t know that she could challenge the initial claim settlement. Public adjusters like AJR are skilled negotiators who know the insurance industry’s ins and outs. They can leverage their knowledge to negotiate a higher settlement if the first offer is unfair.
Time and Stress Are Valuable: Handling the insurance claim independently added stress and frustration to a problematic situation. By hiring AJR Public Adjusters immediately after the loss, Sarah would have been able to focus on her recovery, knowing that a professional was handling the complicated insurance process for her.

The Takeaway for Others:

If you’re ever faced with a significant insurance claim, especially one involving extensive damage, contact AJR Public Adjusters immediately. At the same time, it might feel like an extra expense upfront; their expertise and advocacy can save you money in the long run. They ensure that the full scope of your damages is recognized and that the settlement is fair — helping you avoid the mistakes that can lead to further financial strain and frustration.

While not about an actual AJR client, this story applies to many homeowners facing the same challenges. AJR Public Adjusters has helped countless clients like Sarah who have faced underpaid claims or overlooked damages. If you don’t fully understand your policy or if your damages are significant, don’t hesitate to seek out the help of AJR Public Adjusters. Contact them immediately to ensure you’re getting the fair compensation you deserve.

AJR Public Adjusters is a trusted partner in navigating the complexities of insurance claims. Their A+ Better Business Bureau rating shows their dedication to outstanding service and client advocacy. If you find yourself in a similar situation, don’t face it alone — contact AJR Public Adjusters immediately to help you recover the compensation you’re entitled to.

Lower percentage is not always better

Many times prospective clients question our commission charge.

Insureds wonder if they can lower the percentage will they make out better. We wanted to demonstrate that this may not always be the case.

As they say, you get what you pay for.

See example of a typical claim below and notice the difference to the policyholder when paying a higher percentage fee:

Company A

Initial Claim Offering $50,000

Final Claim Result. $60,000

8% fee to Public Adjuster: $ 4,800

Claim Settlement to Insured: $55,200

AJR PUBLIC ADJUSTERS

Initial Claim Offering: $50,000

Final Claim: $75,000

15% Fee: $11,250

Claim Settlement to Insured: $63,750

Clearly you can see how AJR Public Adjusters assistance, perhaps at a higher fee still nets the insured a better settlement. This policyholder increased their settlement by $8,550 even when paying a higher percentage for our services.

By giving AJR the opportunity to utilize our 30+ years experience to manage and negotiate your claim, you can rest assured you will do better in the settlement process of your claim.

Please view our Better Business Bureau A+ rating here. This may provide helpful information for you to see how AJR should be your first call with your next property insurance claim.

Call AJR first, we even help report the claim and can take over the stress of managing your claim from there. We can be reached at 602-795-5227, email here.

September started off with another 5 STAR Better Business Bureau Review for AJR Public Adjusters, Phoenix – Arizona

AJR is humbled when our clients choose to share their experiences with others regarding the service and success they had while working with us.

Ken K says, “…Bruce provided us with the assurance that he had control of the situation and constantly kept us informed throughout the process.” ” In the end, knowing that Bruce and Stacy were working for us was a great comfort. Their experience and expertise were evident throughout and greatly appreciated. Bruce continually advised us as to what our policy covered, and I believe we received a very fair and prompt settlement with the insurance company.”

Better Business Bureau of Arizona Reviews of AJR Public Adjusters

With your next insurance claim call AJR first.

Allow us to turn you into a satisfied client like Ken.

You can reach us at 602-795-5227.

AJR Public Adjusters Website

LOOK ==Answer some questions for a chance to WIN.

Prior to meeting//learning about us, we are hearing many people did not know our industry existed.

We are reaching out today to see if you have had an insurance claim that was filed before you knew about Public Adjusting and AJR.

We are wondering if you had a claim if you would take a few moments to answer the questions below? We may utilize them on our blog to help spread the word even more about Public Adjusting.

If you take the time to answer we will enter your name in a drawing for an iTunes gift card. We will do the drawing on June 1^st. We will announce the winner on our Linked In, Twitter and Facebook Page and blog page. ( We will send a confirmation email to indicate you have entered drawing)

You can like and follow those here:

We appreciate any likes and follows even if you did not have a claim story to share.

Facebook ———– https://www.facebook.com/ajradjusteraz

Twitter ————- https://twitter.com/AJRPublicAdj

WordPress Blog — https://ajrpublicadj.wordpress.com

Linked In———— http://linkd.in/1BWoiiO

You can just email the responses back to info@betterclaimresults.com

Thank you in advance for your time, support and consideration.

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Name:

What was the type of claim that occurred on your property?

What type of experience did you have with the insurance adjuster?

What/ if any problems arose with the insurance company?

What kind of time frame did it take to settle your claim?

Were you satisfied with the settlement?

Did you feel like you were on equal ground with them, as far as knowledge and coverage’s you were entitled to?

Did your claim take time away from work, personal time?

Had you known prior to your claim about a professional adjuster who works for you, do you think you would you have hired one to assist with the claim?

AJR Public Adjusters 602-795-5227 www.betterclaimresults.com