If your insurer has offered a cash settlement for a home insurance claim, it’s natural to start looking for a builder who can provide a quote. After all, if you believe the insurer’s valuation is too low, obtaining your own quote may seem like the obvious next step.

However, many policyholders discover that simply obtaining a higher builder’s quote does not automatically resolve a dispute. In some cases, the insurer may reject the quote entirely because the disagreement isn’t actually about price.

Before spending time and money obtaining a builder’s quote, it’s worth understanding what issue is really being disputed. In many property damage claims, there are three separate questions that need to be addressed:

1. Has the insurer assessed the correct amount of damage?
2. Has the insurer proposed the correct scope of works?
3. What type of quote is the insurer expecting to see?
   
   

Understanding the difference between these issues can help identify the evidence that may be needed to support your position.

Is the Real Dispute About the Damage?

A builder’s quote is generally based on the damage the builder believes exists.

The problem arises when the policyholder and insurer have different views about the extent of damage. If your builder includes repair work for damage that the insurer does not believe is claim-related, or does not believe exists at all, the insurer is unlikely to accept the quote as evidence of settlement value.

For example:

• A builder may identify additional water damage behind wall linings.
• A policyholder may believe certain areas were affected by an insured event.
• The insurer’s assessor may have concluded those areas were unaffected or pre-existing.
  
  

In that situation, the disagreement is not really about the cost of repairs. It is about whether the damage exists and whether it falls within policy coverage.

Why a Quote May Not Resolve a Damage Dispute

When there is a disagreement about damage, insurers often look for evidence that specifically addresses the cause, extent, and nature of the damage.

Depending on the circumstances, this may involve:

• Building consultant reports
• Engineer reports
• Specialist assessor opinions
• Reinspection of the property
  
  

A builder’s quote may still be useful, but it may not answer the question the insurer is asking. Obtaining a quote before resolving a dispute about damage can sometimes create additional cost and delay without moving the claim forward.

Is the Dispute About the Scope of Works?

Even when everyone agrees on the damage, disagreements often arise about how the repairs should be completed. This is usually referred to as the “scope of works”.

The insurer may acknowledge that damage occurred but propose a repair method that differs from what the policyholder considers appropriate.

Common examples include:

• Reusing existing fixtures and fittings instead of replacing them.
• Repairing cabinets, flooring, roofing, or joinery rather than full replacement.
• Carrying out partial repairs where the policyholder believes a larger area should be addressed.
• Excluding work the policyholder believes is necessary to restore the property.

Why Scope Differences Matter

If you obtain a builder’s quote that includes additional works beyond the insurer’s approved scope, the insurer may compare the quote against its own scope and conclude that the costs are not comparable.

From the insurer’s perspective, the issue may not be the builder’s rates. The issue may be whether those additional works are justified. From the policyholder’s perspective, the concern may be that the insurer’s repair methodology will not adequately restore the property.

In these situations, supporting evidence explaining why the broader scope is necessary can be more important than obtaining another price.

Evidence may include:

• Builder comments explaining repair requirements
• Manufacturer recommendations
• Expert reports
• Industry standards
• Photographs showing why repair is impractical
  
  

Again, the key issue may not be the value of the quote itself. It may be the justification for the additional works being quoted.

What Type of Builder Quote Does the Insurer Expect?

If there is agreement about both the damage and the scope of works, a builder’s quote may become a useful way to assess settlement value. However, not all quotes are created equally.

Many policyholders obtain a simple lump-sum quotation that states a total repair cost. While this can be sufficient for smaller jobs, insurers frequently require a much greater level of detail, particularly where the disputed amount is significant.

What Insurers Commonly Look For

Insurers often prefer detailed quotations that show:

• Individual repair tasks
• Quantities and units
• Labour costs
• Material costs
• Rates applied
• Trade-by-trade breakdowns
  
  

This allows the insurer to compare the quote against:

• Its panel builder estimates
• Quantity surveying assessments
• Internal estimating systems
• Market pricing benchmarks
  
  

A detailed quote enables each repair item to be reviewed individually rather than simply comparing two total figures.

Why Simple Quotes May Be Rejected

A quote that simply states:

“Complete repairs as discussed – $75,000“

may not provide enough information for meaningful comparison.

The insurer may be unable to determine:

• What work is included
• What assumptions have been made
• Whether the quote matches the agreed scope
• Whether costs are attributed to insured damage
  
  

That does not necessarily mean the quote is wrong. It simply means it may not contain the information required to resolve the dispute.

Before You Get a Builder Quote, Ask: What Evidence Is Actually Needed?

Many cash-settlement disputes are assumed to be pricing disputes when they are actually disputes about:

• Damage
• Scope
• Repair methodology
• Supporting evidence
  
  

A builder’s quote can be valuable evidence when it addresses the issue genuinely in dispute. However, where the disagreement relates to damage or scope, other evidence may be needed first before a competing repair price becomes meaningful.

Taking a step back and identifying the insurer’s reason for disagreeing can help clarify what evidence may be most relevant. In some cases that may be a detailed builder’s quote. In others, it may be an expert report, photographs, further assessment, or clarification of the scope itself.

Understanding the real point of disagreement can often lead to a more productive discussion about the claim outcome.

Should I get a report before getting a quote?

Where there is a dispute about the existence, cause, or extent of damage, a report that specifically addresses those issues may sometimes be more relevant than a repair quote alone.

Conclusion

A builder’s quote can be an important part of a cash settlement discussion, but it is not always the first piece of evidence required.

Before arranging a quote, it is worth considering whether the dispute is actually about pricing, the extent of damage, or the proposed scope of works. If the underlying issue has not been identified, even a well-prepared quote may fail to address the insurer’s concerns.

The most useful evidence is usually the evidence that directly addresses the actual point of disagreement.