Update - We got a second quote today from a roofing company that State Farm referred us to. They agreed that the water leak problem was the flashing area where the brick meets the siding. They quoted $225, but would provide no warranty on their work.
Also, the roofing contractor found hail damage to all the metal areas on the roof and on the shingles. We notified State Farm about the hail damage and they have added hail damage to the claim. An adjustor has already contacted me tonight to set up a meeting next week. I asked State Farm to make sure that all this was under one claim so we avoid two $500 deductables.