How do restoration companies determine what to charge?

Posted by Matt Buchanan

What many people don’t realize is that the way restoration companies price their services is considerably different than other contractors.  If you’ve ever received multiple bids from general contractors for a kitchen remodel or bath renovation, you’re well aware of just how big of range those bids can come in at.  It’s not unusual to have some companies come in at 3x or 4x the price of others.

When it comes to the cost of water extraction or water damage restoration services, you shouldn’t see much variation at all from one water damage company to another.  The reason is simple: in most cases, water losses are paid for by your insurance company, so while getting a new kitchen is something you want (and ultimately decide what that service is worth), getting any flooding cleaned up and your home restored is a necessity that someone else is paying for.  As a service provider, that reality doesn’t afford the opportunity to charge whatever they want…insurers simply won’t pay more than what they determine the service is worth?


So who decides the cost of flooding cleanup service?


If the restoration company is reputable, they should be using claims estimating software to determine how much to charge.  Essentially the way these software products work is they allow a technician to create the floor plan of the affected home and essentially line item all of the damages.  So they can determine the amount of square footage that has standing water, carpeting that needs replaced, walls that need replaced, floors that need to be replaced, etc. and the software calculates labor cost, overhead costs, cost of materials, etc. and spits out the total cost.

So while there might be small variations between one water damage company versus another (simply based upon slightly different inputs into the software), assuming both are using insurance-approved estimating software, you really shouldn’t see much variation at all!


Here’s a quick video that explains how the estimating process works should you choose to get a free estimate from RestorationEze:

We have emergency crews available nationwide!

If you’ve experienced a water loss, please call now for a free quote & fast response anywhere in the United States!



About Matt Buchanan

I grew up in Irving, TX and left for Nashville, TN for college. After college I lived in Washington, DC and then in Cairo, Egypt. After coming back to the states, I spent a couple of years back in Dallas before moving with my wife to Denver!
This entry was posted in Water Damage Restoration. Bookmark the permalink.

Leave a Reply

  • YouTube
  • Category

  • Recent Posts

  • Recent Comments

  • Sign Up For Our News Letter :