Stop Underpricing Storm Damage Roofing Jobs

Key Takeaways

• Base your pricing on current material market rates rather than legacy price lists to avoid losing 15% on shingle costs.
• Document every supplement required by local code using official OSHA fall protection standards to justify safety equipment line items.
• Update your labor rates to reflect the current Bureau of Labor Statistics roofing wages to ensure your crew stays on your site instead of jumping to a competitor.
• Collect evidence of price volatility for common roofing components like flashing and underlayment to support overhead and profit (O&P) claims.

1. Check the local hail maps from the last 48 hours to prioritize zip codes.
2. Review your last three material invoices for aluminum and asphalt.
3. Verify your current insurance coverage limits for high-climb work.

Should I trust the insurance adjuster's price list?

No. If you rely solely on standard industry estimating software without local market adjustments, you're leaving about 20% of your potential profit on the table. Adjusters use regional averages that often lag behind the real-time costs you face at the supply house on a Tuesday morning in July.

A six-person roofing crew in Indiana nearly went under last summer because they accepted insurance-dictated pricing on 12 consecutive hail claims. By the time they factored in the rising cost of disposal fees and gas, their net margin hit a measly 4%. They weren't accounting for the reality of their local overhead. You've to treat the adjuster's estimate as a starting point, not the ceiling.

The Supplement Strategy

Storm restoration is a game of documentation. If you don't list the specific code requirements for drip edge or ice and water shield, the carrier won't pay for them. Most carriers will fight you on line items unless you provide proof. I suggest taking photos of the existing roof layers and comparing them to state or local building codes. Mentioning specific code sections in your supplement ensures the adjuster knows you aren't just guessing.

Labor is your biggest variable right now. The heat in July slows down production. A crew that tears off and replaces 30 squares in a day during May might only do 22 squares when it's 95 degrees out. Your pricing must reflect this reality. If you don't account for the heat-related productivity drop, your labor cost as a percentage of the total job will spike, eating your profit before the final inspection.

Material Volatility and O&P

Don't sign a contract today based on last month's shingle prices. Suppliers are notorious for mid-season surcharges when demand peaks after a major storm. You need a clause in your contract that allows for a price adjustment if materials jump by more than 3% between the signing date and the build date. This protects your cash flow from getting squeezed by the supply chain. (Disclosure: we may earn a commission if you sign up through our links.

Item Category	Typical Industry Margin	Recommended Storm Margin
Shingles & Underlayment	10-15%	20-25%
Labor (Subcontracted)	15%	20%
Safety & Compliance	0% (hidden)	5% (line item)

Overhead and Profit (O&P) is the most contested part of any storm claim. Carriers love to say they only pay it if there are three or more trades involved. That's a myth. If you're managing the project, coordinating the dumpster, ensuring site safety, and handling the permitting, you're acting as a general contractor. You deserve to be paid for that coordination. Many owners find that switching to a more aggressive supplement process adds $2,500 to $5,000 to every average residential claim.

I saw a siding contractor in Ohio lose $12,000 on a single wind-damage project because he didn't realize the local landfill had doubled its dumping fees for construction debris overnight. He ate the cost because his estimate was already locked in. Don't be that guy. Call your local yard before you send the estimate.

If you want to grow a shop that stays profitable through the winter, you've to treat July like it's your only chance to build a cash reserve. Every dollar you miss on an insurance supplement is a dollar you can't use to pay your bills in January. Watch the margins closer than you watch the radar.

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📋 Disclaimer

This article is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations change frequently, and the information presented may not reflect the most current legal developments. Always consult with a qualified professional (CPA, attorney, financial advisor) before making business decisions based on this content. MyBizNerd may receive compensation through affiliate links, but this never influences our recommendations.

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