The Roofing Estimate Dilemma: Who Gets the Extra Money?

Home repairs can be stressful enough, especially when insurance is involved. But what happens when your insurance company pays out more than expected, and your contractor comes knocking for the difference? That’s the situation one homeowner recently found themselves in, sparking a consumer question with broader implications.

 

Let’s unpack what happened, why it matters, and what you need to know to protect yourself before signing on the dotted line.

The Situation: Insurance Paid More, So the Roofer Wants More

A homeowner had a new roof installed and paid the contractor the full amount listed in the insurance company’s initial estimate. So far, so good. But once the roofer discovered the insurer had approved a higher payment than originally quoted, they came back asking for the difference.

 

Can they do that?

What happens when your insurance company pays out more than expected, and your contractor comes knocking for the difference? (iStock)

Surprisingly, yes. It just depends on what you signed. 

 

In this case, the contract included language stating that all insurance payments for the roof replacement, including any supplemental amounts, would go to the contractor. That means even if the homeowner thought they had already paid in full, the contract said otherwise.

 

This is a classic example of how one-sided contracts can leave homeowners vulnerable, especially when dealing with insurance-related repairs.

Why Contracts Like This Are So Common

In the world of home repair, and particularly roofing after storm damage, contracts often include clauses that assign the full insurance payout to the contractor. These clauses are standard in many “Assignment of Benefits” (AOB) agreements, which let the contractor negotiate directly with your insurer.

 

While AOBs can simplify the claims process, they also shift control (and money) away from you.

 

Contractors may argue that additional payments reflect necessary upgrades, unexpected material costs, or scope changes. But without reviewing the contract terms, homeowners may feel blindsided when asked to hand over more money after already “paying in full.”

How to Protect Yourself Before Signing

Here’s the hard truth: once you’ve signed, you’re legally bound. Yeah, even when you didn’t fully understand the contract. That’s why reading and understanding the fine print isn’t just good advice; it’s a consumer survival skill.

 

Before you commit to any repair agreement, especially one tied to insurance payouts:

  • Read every clause. If the contract mentions assignment of insurance benefits or redirects funds to the contractor, take note.
  • Don’t sign under pressure. Reputable contractors will give you time to review.
  • Hire a lawyer if needed. It may cost a little upfront, but can save you thousands (and a major headache) later.
  • Ask questions. What happens if the insurer pays more? Who keeps the surplus?

If something doesn’t feel right, it probably isn’t.

Contractors have their interests protected by detailed contracts… shouldn’t you have yours? (iStock)

What If You’re Already in This Situation?

If you’ve already signed and your contractor is demanding more money than you expected, review your contract immediately. Look for language regarding insurance payments, final billing, and dispute resolution.

 

Then, consider these next steps:

  • Consult an attorney. They can help you understand your legal obligations and whether you have any recourse.
  • Document everything. Keep records of payments, insurance correspondence, and contractor communication.
  • Contact your insurer. Ask for a breakdown of payments and what they were intended to cover.

In Georgia, consumer protection laws don’t always cover these scenarios unless there’s evidence of fraud or coercion. That’s why prevention via diligence and legal review is your best defense.

Final Thought: Don’t Let Contracts Work Against You

Most of us aren’t lawyers, but when it comes to home repairs, a little legal savvy goes a long way. Contractors have their interests protected by detailed contracts… shouldn’t you have yours?

 

By taking a pause before you sign, asking the right questions, and consulting professionals when needed, you can avoid surprises and keep your home, and your wallet, safe.

 

Have you ever faced a contractor dispute or unexpected bill after insurance work? How did you handle it?