Restoration & Insurance

5/25/2018 (Permalink)

How Much Does Mitigation and Restoration Cost? This is a good question. When a disaster strikes a property, people deserve to know what the repairs will cost. At first glance, mitigation and restoration work seems expensive. That is because the labor costs and equipment charges have to support “the cost of doing business” for services that are not readily seen or understood. For example, restorative drying equipment has to be delivered and picked up at each job site. Administrative work is also required to gather job-photographs, measurements, floor-plan sketches and job diaries. These administrative tasks are required to document the work progress and the costs for you, for your insurance company, or a property management agent.  

For the most part, mitigation and restoration costs are determined by using a national third party costing program that features a regional rate sheet. Some of the charges are hourly rates, others are based on the square foot or lineal-foot measurements, and some fees are based upon daily equipment charges.

Most restoration contractors, many general contractors and the majority of insurance companies agree to use these established labor and line item costs. In other words, most reputable companies in the property damage recovery industry charge similar prices.

How Much Will Your Mitigation Work Cost?

Your insurance policy is a legal contract between you and your insurance company. (SERVPRO does not make interpretations concerning your policy or coverage.) Your Insurance Agent can help you understand your policy.

The purpose of insurance is to return your structure and your contents to the condition they were in “one-second before” the damage occurred. Insurance does not pay for mental stress or inconvenience. Some policies may pay for additional living expense if the damage is so severe you need to be relocated. Your insurance company will issue a claim number to identify your loss. All contractors and vendors will need to reference your claim number when they submit invoices (sometimes referred to as estimates). An Insurance Adjuster will also be assigned to your claim. 

Adjusters require information from the restoration company. That is another reason why insurance companies pay us to make a site visit, provide an estimate and a "scope" of services. Adjusters are certified representatives of the insurance company. They also make sure you're properly taken care of per the terms of the coverage you purchased according to the details in your printed policy. They also review and oversee the restoration project to its satisfactory conclusion. This is to assure that the insurance company is not taken advantage of by you (the policyholder) or by the service provider who is working on the claim.

Before the work is underway most restoration companies will discuss a "ballpark cost" including an opinion as to how long the project should take. Before the job is completed "hard numbers" will be presented. At SERVPRO of Stockton, we follow national price guidelines approved by the major insurance companies. Our costs are fair and they are regionally competitive.  Our job is to work on your behalf, to your satisfaction. Our pledge is to fulfill our famous slogan, "Like it never even happened."