Every roofer has a theory about why carrier estimates come in light. The usual suspect is the missing line item: no drip edge, no starter, no steep charge. Those are real, and we’ve written plenty about them.
But a report published this week points somewhere less obvious. In the files it studied, the biggest problem wasn’t what carriers left out. It was what they paid for the work they did include.
What the report is, and what it isn’t
Finch, a claims software company, published its Q3 2026 State of the Claim report on October 13. It draws on a database of 9,333 property claim files with data through September 1, and Claims Journal covered it the same day.
Two caveats before the numbers, because they matter:
- Finch sells tools to public adjusters, so its files come from the policyholder side of disputed claims. Finch itself says the findings come from selected files and are not a representative national sample.
- Many of the headline findings rest on small, large-loss samples, such as 21 or 43 claims, and fire losses make up a big share of the detailed comparisons.
So this isn’t a study of residential roof claims. It’s still the best recent look at where the money gap between carrier and policyholder tends to sit, and several findings translate directly to roofs.
Finding 1: Underpricing beat omissions about 9 to 1
On 21 large disputed claims where both sides itemized the work, Finch counted 146 items the insurer priced lower versus 28 items the insurer left out entirely. That’s roughly nine underpriced lines for every missing one. The median gap on those claims was $76,000.
The categories with the biggest price differences included labor, where insurer pricing was typically 73% lower, along with plumbing, cabinetry, temporary repairs and HVAC. By dollars, heavy equipment, labor, and permits and fees made up 42% of the measured gap.
What that means on a roof
Most roof supplements focus on adding what’s missing. This data says you should give equal attention to what’s already there.
- Check the price list. Xactimate price lists are regional and updated monthly. An estimate written on an old price list, or the wrong region, underprices every line on the page without anyone noticing.
- Check the labor-heavy items. Steep and high charges, tear-off of additional layers, flashing work and detach-and-reset items are where labor gets squeezed.
- Check permits and fees. They’re easy to forget and easy to prove. A link to the jurisdiction’s fee schedule usually settles it.
- Check equipment and disposal. Dumpsters, haul-off, and lifts or staging on tall homes are real costs that come off the estimate quietly.
- Check material pricing after a price jump. When shingle or membrane prices move, estimates lag. Our commercial claims update shows how fast that happened this summer.
A supplement that corrects pricing is still written in the carrier’s own platform and price list. The goal is the right price list and the right line items, not inventing your own numbers.
Finding 2: The first number is not the last
In 43 claims where the insurer’s figure appeared next to the public adjuster’s request, the final settlement typically landed 43% above the insurer’s figure. The adjuster’s request was typically 58% above, so settlements ended up closer to the adjuster’s side.
On 134 claims where the insurer paid nothing for six months, the final amount was typically 29% above the insurer’s earliest valuation. Only about a quarter landed below the insurer’s first number.
One honest note: these are disputed, large claims handled by public adjusters, so don’t compare them with a typical roof supplement. Our own historical average, a 28.6% increase in RCV on supplemented roof claims, measures something different. The shared lesson is simpler: a carrier’s first estimate is a starting point, not a verdict.
Finding 3: Only about one in three policies showed code upgrade coverage
This one deserves every roofer’s attention. Among 3,030 claims, 978 had a readable limit, and about 32% of those showed coverage for upgrades required by current building codes. The typical cap was 10% of the dwelling limit. Finch notes the records don’t show how often those upgrades were actually paid.
Code items like drip edge, ice barrier and decking are some of the most winnable lines in a roof supplement. They’re also the lines that depend most on ordinance and law coverage. So before you build a supplement around code items, look at the declarations page. Our posts on code items adjusters miss and policy endorsements that kill a supplement explain what to check.
Finding 4: Wear and tear is the exclusion carriers reach for first
Wear and tear appeared in 42% of policies and was cited in about 36% of coverage decisions, more than any other exclusion. Mold, fungi and rot followed among the most cited.
On a roof claim, that’s the “old roof, not storm damage” argument. The defense is documentation that ties damage to a specific event: chalked test squares, collateral damage on soft metals, consistent directionality and a weather record for the date of loss. When a roof has taken more than one storm, our guide to pinning the date of loss covers how to separate them.
Finding 5: Big claims take a long time, small ones less so
The median claim in the database took about 318 days from intake to final payment. Claims under $50,000 took about 160 days; claims over $1 million took about 538. Wind claims ran about 310 days, and Georgia tied for the slowest state at 395 days.
Most residential roof claims sit at the small end of that range, and a roof supplement isn’t the same as a disputed claim. Still, the pattern holds at every size: the longer a claim stays open, the more cash flow it ties up. Submitting a complete supplement early, before or during the build, is the cheapest way to shorten the wait.
Where roofers stop and public adjusters start
It’s worth being clear about this, since the report comes from the public adjusting world. Roofers can document damage, write accurate estimates and submit supplements for the work they perform. Negotiating coverage or interpreting the policy for the homeowner is public adjusting, which requires a license in most states. Our breakdown of where supplementing ends and public adjusting begins covers it state by state.
FAQ
What did the Finch Q3 2026 report find?
In selected disputed property claims, underpriced items outnumbered omitted items about 9 to 1, and disputed claims typically settled 43% above the insurer’s figure.
Does this mean roof claims are underpaid by 43%?
No. The 43% comes from 43 large, disputed claims handled by public adjusters. It isn’t a measure of typical roof claims or roof supplements.
How can a roofer tell if a carrier estimate is underpriced?
Check the price list region and date, labor-heavy items, permits and fees, equipment and disposal, and whether material prices moved recently.
Why does code upgrade coverage matter for roof supplements?
Code items are usually paid through ordinance and law coverage. If the policy has little or none, those items may not be owed, so check before you build the supplement around them.
Want a second set of eyes on your next carrier estimate, pricing included? EOD’s former adjusters review every line, write the supplement in the carrier’s own platform and follow up until a revised estimate is issued. 10% of the increase, no increase no fee, no minimums. See pricing or send us a file.
Sources: Finch, State of the Claim Q3 2026 · Claims Journal, Oct 13, 2026
