It's one of the most common questions I get: the carrier settled at $54,000, but every contractor is bidding $63,000–$70,000. Is everyone padding? Usually not. More often the gap is real scope the carrier's estimate undercounted — and it's exactly what a supplement exists to recover.
Carrier estimates run lean
Xactimate estimates are built from a desk or a quick inspection and tend to undercount quantities, miss code-required upgrades, and price at regional averages. A contractor standing in the unit sees the full extent of the damage. A higher bid often means they're scoping work the carrier simply didn't see.
Separate legitimate gap from padding
- Line up the bid against the carrier estimate and find what's added.
- Added items that are real, documentable scope → candidates for a supplement.
- Added items with vague 'as needed' language or no quantities → possible padding.
- A firm, itemized bid that's higher is more trustworthy than a lump-sum bid that matches the carrier number exactly.
The move is a supplement, not eating the gap
If the extra scope is real, you or the contractor submit a supplement to the carrier with documentation, and the settlement gets adjusted. Awarding the lowest bid just because it matches the carrier number often means awarding the least complete bid — and paying for the missing work later anyway.
BidsScores reconciles each bid to the carrier estimate, separates legitimate added scope from vague padding, and shows the supplement opportunity and your true out-of-pocket exposure.