Thank you for your follow-up, AJ. I am sorry that you feel that your information was not being read. Please allow me to try again.
If it ends up putting money in your pocket that is not being directly used to make repairs, that is fraud. Look to my prior example. You bid $4,500 which is lower than $5,000. However you pocketed $3,000 from the $4,500 as the cost for material was $1,500. Then all you would legally get is $1,500. Insurance companies, fairly or unfairly, will not allow you to take teh remainder and use it for your own needs.
If you read my answer, you'll see that I stated, "...perform the same repair for $4,500.00" . There would be no intent to "pocket" the extra $500.00. There would be no extra $500.00 The repair would be offered at $4,500.00, thus saving the insurance company the difference.
I understand, and my apologies if I came to the incorrect conclusion. Please see my example above, which is what I utilized in the past answer.
Obviously the way this would work in theory would be by substituting my own labor at a reduced rate. That was what I was getting at.
That's the problem, you cannot charge them for your own labor. The insurance company would not cover it.
However, your admonition to me argues that I can't go that route:
"Furthermore insurance companies do not pay the land owner to make their own repairs--they can pay for the value of the materials, but they do not allow the land owner to bid on their own repairs and their own work.
Correct, that is not a possible option.