Reading a Restoration Estimate Before You Sign

Is a restoration estimate the same as a repair estimate?

Not usually. A mitigation estimate covers stopping the damage from spreading: the emergency response, removing water, drying, taking out what cannot be saved, and cleaning. A repair estimate covers rebuilding afterward, such as drywall, flooring and paint. They are often written at different times, and sometimes by different companies, because the rebuild can only be scoped once the drying shows what was actually damaged.

Whose estimate is the number?

Insurers and contractors commonly price work line by line in estimating software, and Xactimate, from Verisk, is widely used for property claims. So the company's estimate and your insurer's may be built the same way and still differ, most often in what each one counts. If the insurer's number looks short, the company may have overlooked something, and you can ask for a review and a supplemental payment with documentation such as the contractor's estimate. Your policy may also have an appraisal process, and your state's department of insurance can explain your options.

Why does an estimate change?

Water travels, and some of it is out of sight. Once walls are opened or readings come in, a company may find more wet material, or drying may take longer than planned, and that changes the scope. That is normal. What matters is that a change is explained and written down before the work happens. Ask how you will be told, and whether you approve a change first.

What is a work authorization or a direction to pay?

A work authorization is the paper that lets the company start, and it sets the terms. A direction to pay asks your insurer to include the company on a payment. Neither should be confused with an assignment of benefits, which the Florida Department of Financial Services describes as an agreement that transfers your policy's claim rights to a third party, who can then file the claim, make repair decisions and collect payment without you. The same agency says you do not need to sign one to get a claim processed or your home repaired.

Read every page before you sign, never sign a blank form, keep a copy, and check your policy for restrictions. If the wording worries you, get legal advice first.

Ask for the records

Ask for moisture readings and equipment logs at each visit: where readings were taken, what was placed and when it was removed. The industry's water damage standard, ANSI/IICRC S500, covers project documentation and drying monitoring. These records help you check the bill, and your insurer may ask for them.

Questions to ask before you sign

• Is this mitigation, repair, or both?
• What could change the total, and do I approve changes in writing first?
• How many drying units, and for how many days?
• Does this form assign or direct any insurance payment?
• Will you give me the moisture and equipment logs?

You can browse water damage restoration companies in the directory. The directory lists companies and does not vet or rate any of them, so ask the questions above of every company you call. For how to prepare for the insurer's side, see the adjuster's visit and documenting your loss.

This is general information, not legal or coverage advice. Policies and state rules differ, so read your own policy and ask your insurer or agent what applies to you.