The scope of loss determines how much money you make on an insurance job. Most contractors read it once, accept it, and move on. The contractors making the most money on insurance work read it twice — once to understand what's there, and once to catalog everything that isn't.
What a Scope of Loss Contains
- Labor and material for each line item
- Overhead and profit (O&P) — typically 10/10 or 20%
- Sales tax on materials
- ACV calculation — full value minus depreciation (what they pay upfront)
- Holdback amount — depreciation released after completion
The 9 Most Common Scope Omissions
1. Starter Strip (Under-measured)
Adjusters often measure eave length only — ignoring rake sides. Measure both. Cite IRC R905.2.8.1. Line code: RFG STARTR.
2. Ridge Cap Not Broken Out
Sometimes included inside the shingle line item without a separate quantity. If it's not its own line item, supplement it. RFG SHIP, per IRC R905.2.8.2.
3. Pipe Jacks Miscounted
Walk the roof. Count every penetration. Match to the scope. Supplement the difference. $85–$140 per penetration, RFG PIPE.
4. Step Flashing Missing
Any wall-roof intersection requires step flashing per IRC R903.2. If the scope doesn't include it, measure every linear foot and supplement. RFG FLG AL.
5. Drip Edge Excluded
Required at eaves and rakes per IRC R905.2.8.5. If original installation didn't have it, required during replacement. RFG DRIP.
6. Underlayment "Not Storm Damage"
Counter: per IRC R905.2.7, compliant underlayment is required with new shingle installation regardless of prior condition. RFG FELT.
7. Hand-Sealing Missing
In high wind zones, hand-sealing each tab is often required and excluded. Check local wind zone. RFG MAS HS.
8. Decking Replacement Undocumented
Photograph all damaged decking before you cover it. This is mandatory — no photos, no supplement approval. RFG PLYWD.
9. Overhead and Profit Missing
O&P should be included when a GC coordinates the work. If it's not on the scope, add it. This is often 20% of total scope value.
Carrier-Specific Reading Notes
State Farm: Watch for re-inspection note. Any supplement over $2,000 triggers mandatory re-inspection. Pricing may be 8% below published Xactimate (TX Standard suppressed list).
Allstate: Pricing runs 10% below published Xactimate. Document the published price and note the discrepancy explicitly. ClaimXperience portal required for submission — email gets lost.
Farmers: PCS system, not Xactimate. Always request their PCS scope before submitting anything.
USAA: Premium policies, higher coverage limits. Build military affiliation verification into close-out workflow.
How to Dispute a Denial
Path 1: Resubmit with stronger documentation — add photos, add IRC citation, reference Xactimate code explicitly.
Path 2: Request re-inspection — have Xactimate codes ready, walk the roof with the adjuster.
Path 3: Invoke the appraisal clause — each party appoints an independent appraiser for unresolved value disputes.
Path 4: Bring in a Public Adjuster — they represent the homeowner, earn 10–15% of settlement, and have standing in disputes that contractors don't.
Documentation standard: Every supplement dispute comes down to documentation. Before-photos, close-up hail strikes with measurement scale, GPS-tagged and timestamped. Contractors who win disputes consistently are the ones with the most thorough pre-supplement documentation.