The sequence, in order
- The adjuster's estimate sets the claim scope at RCV (replacement cost value)
- First check: ACV, replacement cost minus depreciation, usually payable early, often with the mortgage company as co-payee (their endorsement process adds weeks; start it immediately)
- The homeowner's deductible: their share, collected by you, and legally non-waivable in most states; 'eating the deductible' is illegal in many and a margin-killer everywhere
- Supplements: your documented requests for what the original estimate missed, code-required items (ice barrier, drip edge), decking, steep/high charges, disposal realities. Filed with photos and code citations, negotiated with the carrier
- Recoverable depreciation: the held-back amount, released after completion is documented (final invoice, photos, sometimes inspection)
Why supplements are the margin
Initial adjuster estimates are systematically light, not maliciously, structurally: estimates written from software defaults miss code items and site conditions. On a typical residential claim, professional supplementing commonly adds 10–30% to the claim. A roofing company doing 100 insurance jobs a year that under-supplements by $2,000 a job leaves $200K on the table, invisible, because nobody bills for what nobody requested. The companies that win insurance work treat supplementing as a discipline: documented at tear-off (photos of every decking surprise), filed fast, tracked to approval, and billed the moment approved.
The tracking that stops the leaks
Every insurance job needs claim-stage AR visibility, in QuickBooks, that means the job tracked with its receivable components distinguishable: ACV billed/received, deductible invoiced/collected, each supplement (filed → approved → billed → paid), and depreciation (pending → released). The leak points are always the same: approved supplements never invoiced, released depreciation never chased, deductibles awkwardly forgiven. A weekly claim-AR review, every open job, every unpaid component, aged, is the single highest-ROI meeting in a roofing company. ( Roofing for the full books structure, Job Costing in QuickBooks Online: The Contractor Setup That Actually Works for the costing side.)
The compliance edges
- Deductibles: collect them, document them, most states prohibit waiving/absorbing them, and 'deductible assistance' marketing has ended companies
- Assignment of benefits and contingency agreements: state-specific and shifting; your contracts should match your state's current law
- Revenue timing: big jobs spanning storms and months benefit from honest revenue recognition, deposits and draws handled as liabilities/progress, not day-one income ( Customer Deposits in QuickBooks: Stop Booking Them as Income )
Frequently asked questions
The carrier is slow-paying depreciation. Normal?
Common, release requires completion documentation, and carriers don't chase you to pay you. A standing follow-up cadence (submitted → 15 days → call) converts 'slow' into 'paid.' Aging it in the books is what makes the follow-up happen.
Should supplements be separate line items in my books?
Yes, supplements as distinct invoice lines per claim give you the metric that matters: supplement revenue per job and approval rate, which tells you whether your supplementing discipline is working or leaking.