Two kinds of bids you are likely to see
Itemized bid
- Lists each room, trade and material with quantities
- Can be matched against the insurance estimate line by line
- Makes change orders and supplements easier to price
- Takes longer to read
Lump-sum bid
- Gives one total, sometimes with a short description
- Quick to read, hard to compare
- Leaves room for disagreement about what was included
- Ask for a breakdown before treating it as comparable
Side-by-side comparison sheet
| Item | Insurance estimate | Bid A | Bid B |
|---|---|---|---|
| All damaged rooms included | |||
| Wall cut heights and drywall areas match | |||
| Flooring type and extent | |||
| Cabinets and countertops | |||
| Electrical, plumbing and HVAC repairs | |||
| Permits and inspections included | |||
| Testing or abatement if needed | |||
| Content moving and floor protection | |||
| Final cleaning | |||
| Stated exclusions | |||
| Payment schedule | |||
| Estimated duration | |||
| Total |
Questions that settle most differences
- Why is this item in your bid and not the other one, or the reverse?
- Did you assume any part of the loss would be repaired rather than replaced?
- Are your quantities measured on site or taken from the insurance estimate?
- What would make your price change after work starts?
- Can you show the bid in the same room order as the insurance estimate?
Working through the sheet
Start with the insurance estimate column, because it is the common reference every bid can be measured against. Go row by row and note whether each bid includes the item, includes it with a different quantity or material, or leaves it out. A bid that matches the insurer's scope closely is easy to reconcile later; one that departs from it should explain why.
Next, look at terms rather than totals: how payments are staged, what is excluded, how long the job is expected to take and how supplements will be handled. Two bids with the same total can carry very different risks if one requires a large deposit and the other bills by completed stage.
Only then compare price. By this point the differences should make sense. If the numbers are still far apart, ask each contractor to walk through the gap. Their answers often reveal more about how they work than the bid itself, and they give you something concrete to bring to the adjuster if a supplement turns out to be needed.
Common questions
- Do I have to accept the insurer's preferred contractor?
- Generally you can choose your own contractor. Ask the insurer to confirm in writing how either choice affects the claim and payments.
General information for Littleton, not a quote or professional advice. In an emergency, call 911.