Lowball Replacement Cost?

When your Replacement Cost Estimate comes in, the amount you see may feel too low or out of line with prices you’re hearing. 

Here’s what to do to revisit and potentially push back:

*This information has been checked for accuracy and non-bias by
 licensed professionals, experts and representatives from
 National 501c3’s. Consult with a licensed professional about your specific situation..

Ask for the

full report

Politely ask your adjuster for a full copy of their replacement cost estimate, not just the summary.

You’re looking for a breakdown that shows:

  • Square footage used

  • Cost per square foot

  • Construction quality/type

  • Any omitted features (custom finishes, decks, garages, etc.)

1.

Check the square footage

Compare the adjuster’s number to what’s listed as to what your square footage was. Make sure they’ve included all finished living spaces, not just the main structure.

2.

Compare cost per square foot.

Ask the adjuster what per-square-foot rate they used. You’ll need to get your own estimate to counter this with.

3.

Check the quality assumptions.

Field adjusters sometimes classify homes as “average” or “builder grade” even when they had custom features or higher-end materials. If your home had upgraded finishes, like hardwood floors, solid-surface counters, and custom windows, make sure those are accurately reflected. You can reference your “WHAT MY HOUSE HAD” worksheet in your Google Drive for this.

4.

Submit a written rebuttal.

Use the template below to email your adjuster and challenge their estimate formally.

5.

Be persistent and document everything.

Always communicate in writing or follow up phone calls with an email summary. If you’d like a Call Log or organizational folders, you can find those here.

The more organized you are, the harder you are to ignore. 

GET A REAL

REBUILD COST ESTIMATE

Your best arguing tool is an accurate, current estimate of what rebuilding a house like yours might cost, with all of today’s considerations.

The report you need is called a “Scope of Loss Estimate”


WHAT IS A 

“SCOPE OF LOSS

ESTIMATE?”

A Scope of Loss Estimate is a detailed document that lists the specific damage to a property and the work required to repair or replace it after a loss. It forms the basis for cost estimates and insurance payouts by defining what needs to be fixed, rebuilt, or replaced.

If you need to push back against a lowball estimate from your insurer, it’s likely that you’ll need a professionally prepared Scope of Loss Estimate, not just a ballpark from a contractor. 


Who Can Do A

Scope Of Loss Report:

  • Licensed Contractors - Some contractors specialize in insurance estimating. Make sure they have experience with fire rebuilds.

  • Independent Estimators - Professionals who use the same software (Xactimate) as insurers (or something similar), but work for you, not the company.

  • Public Adjusters - Licensed advocates who handle insurance claims on your behalf and often produce detailed scopes.

  • Architects/Engineers - Can provide supporting documentation, but usually pair with an estimator for cost breakdowns.

  • Project Managers/Owner’s Reps - You may have to hire them to project manage your full job for them to do this for you, but you might get lucky.

TIPS:

#1:

Any contractor who tries to get you to commit to rebuilding with them at this point raises red flags - you don’t even know what you’ll be building yet. 

#2:

A good “SOL” can be the difference between getting your full Dwelling coverage or not, so that few thousand dollars may be incredibly well spent.  

#3:

No contractor can give you an exact build estimate without architectural plans - every detail in the drawings affects cost and timing, so be wary of anyone who claims otherwise.

“If a builder gives you a bid without knowing what they are building, it’s a junk bid. That's a sales tactic.” 

-Chris Corbett, Master of Architecture, Dreamers & Doers / Altadena Collective

REMEMBER:

  • Your insurer must cover rebuilding your home as it was - up to your policy limits, not for redesign or quality upgrades. If costs far exceed coverage, there may be recourse, but accurate estimates are the first step.

  • This isn’t what it will actually cost you to rebuild. It’s just a rough ballpark so the insurer can gauge whether you’re underinsured - or look for ways to nickel-and-dime.

Who Can Help:


Brass-Tacks is an Altadena local company (founded by total loss survivors) that offers lower cost Scope of Loss Estimates at $750.

What to do:


Get your new Scope of Loss Estimate, then use this template to send your adjuster an official rebuttal.

Gather all the documentation listed in it so your appeal is as strong as possible, including anything showing your home was higher quality or larger than their estimate listed.

If you have proof that your finishes cost a higher amount, include those as well.