Property Loss Professionals: Who Are They and How Can They Help You?


Restoration Contractors

Who are they?

As their name implies, restoration contractors are called to restore a damaged property to its pre-loss condition on behalf of the insurance company. It is most common for them to be involved in the damage mitigation efforts immediately following a loss.

In most cases the policyholder is under no obligation to use the insurance company’s vendor. The insured can choose their own restoration and/ or construction vendor.

What role do they play?

Restoration contractors put together a scope of repair for the policyholder’s loss on behalf of the insurance company, along with a cost estimate to help the insurer understand what might be required monetarily to restore the property to its pre-loss condition. Some restoration contractors will also provide services such as removing contents and damaged property from the site, and cleaning and restoring damaged items. These might include emergency services to protect a property from suffering more damage; for example, drying out a building that has suffered water damage or boarding up a roof that has been compromised by fire.

How are they compensated?

Often, there is a contract or work authorization between the restoration contractor and the insured. Other times the contractor works as a consultant on behalf of the carrier. Some restoration contractors might also be assisting a public adjuster.

Since every claim is unique, the policyholder should clarify for whom the restoration contractor is working before signing any agreements or contracts. Since the insurance company will ultimately pay for this work by issuing a check to the policyholder, the policyholder will in turn need to write a check to the restoration contractor. Because they may have a financial interest in the claim, these professionals will sometimes even be named as an additional payee on the check from the insurance company to the policyholder.

Are they licensed?

Most restoration contractors are licensed as general contractors by their county or state.

How are they trained?

Training for restoration contractors varies. Some have college or technical school degrees in their speciality area; many if not most learn on the job. If the licensing bodies in their locale require continuing education, then local contractor organizations...

Zakhar Mar/