Commercial Claim Scope and Estimate Disputes in Texas
When the insurer's estimate and your contractor's estimate for a commercial or large residential property are far apart, the differences can usually be traced line by line.
Commercial property losses
Scope, price and method.
Most estimate differences come down to what is included, what it costs, and whether something is repaired or replaced.
- Scope
- Pricing
- Method
Put the two estimates side by side, line by line. Mark each difference as scope (what is included), pricing (unit costs and charges) or method (repair or replace), and ask the insurer in writing to explain each one.
Estimate comparison worksheet
Print this page or copy the table into a spreadsheet.
| Item or area | Insurer line | Your line | Difference | Basis or document |
|---|---|---|---|---|
Line items to compare
- Quantities and measurements
- Waste factors
- Access, staging and equipment
- Permits and building code items
- Depreciation and holdback
- General conditions
- Overhead and profit
See actual cash value, depreciation and holdback and estimating building permit costs.
Why large jobs add variables
Phased work, several trades, long timelines and price changes during the claim can all move an estimate. Keep dated copies of every version of every estimate.
Questions to ask the insurer in writing
- Which items in my estimate did you not include, and why?
- What unit prices and price source did you use, and as of what date?
- Why is this item priced as a repair rather than a replacement?
- What documents would you need to reconsider a line?
If the disagreement is about the amount of loss, the policy may include an appraisal clause. See the appraisal and umpire process.
About my background
Before I practiced law, I spent years on the property side of insurance claims. I was previously licensed and worked as a public adjuster, roofing contractor, home inspector and contractor, and I inspected and estimated large residential and commercial properties with many buildings. I also served as an appraiser, an umpire and a retained witness in first-party insurance disputes. I never worked for an insurance company.
Today I'm an attorney licensed in Texas and Alabama. I'm also a Florida mediator, but I don't practice Florida law. Every case is different, and no result can be promised.
Other states. The rules for a property in another state can differ. I am licensed to practice law in Texas and Alabama only, and I do not practice Florida law.
Frequently asked questions
Why is the insurer estimate so much lower than my contractor estimate?
The difference usually comes from scope, pricing or method. A line-by-line comparison shows which, and gives you specific questions to ask in writing.
What is overhead and profit, and when do people dispute it?
Overhead and profit are charges a general contractor adds to cover business costs and profit. Disputes often turn on whether the job needs a general contractor and what the policy says.
Who decides the scope of repair?
The policy, the facts and the applicable codes shape the scope. If you and the insurer disagree, ask for the basis of its scope in writing.
What if the insurer wants to repair part of a building?
Ask in writing why a partial repair was chosen and whether it will match and meet code. Keep your contractor's written opinion.
Can I hire my own estimator?
Yes. You may hire your own contractor or estimator. Check the policy for any terms about estimates or inspections.
Related pages
Michael P. Bowman is licensed to practice law in Texas and Alabama only. The firm's office is in Austin, Texas; the firm does not have a bona fide office in Alabama. Law Office of Michael P. Bowman PLLC (The Claim Attorney), 7903 Entrada Cove, Austin, TX 78730. (512) 352-9937. Last updated October 29, 2026.
General information, not legal advice. Contacting us does not create an attorney-client relationship. Responsible attorney: Michael P. Bowman, Austin, Texas.
