A restoration estimate is a document you may be asked to sign at one of the most stressful moments of owning a home. When a contractor hands you a multi-page estimate after a flood, fire or mold discovery, it helps to know how to read it.
You can ask about any line on that estimate. A clear, itemized estimate makes that easy, and a contractor who cannot explain a line should be asked to put the explanation in writing.
How Restoration Estimates Are Built
Many contractors and insurers build estimates with estimating software such as Xactimate (made by Verisk Analytics). These tools hold a database of tasks with labor, material and equipment rates for a given area. Each line item should say what work is done, how it is measured and the rate used.
Rates differ by region and change over time, so ClaimCure does not quote figures. What you can check is whether each line is described, measured and explained.
Three Kinds of Estimate Problems to Look For
1. Unexplained fees
These are flat charges with no description of work, for example a generic "access", "service" or "monitoring" fee. Ask what the charge covers and whether it is already included in another line.
2. Rates that are hard to justify
If a unit rate looks high compared with another written quote for the same scope, ask the contractor to explain the difference. Getting more than one itemized quote is the simplest way to compare.
3. Scope that is larger than the damage
Check that the work matches the damage. For example, ask whether removed materials could have been dried or cleaned in place, and what readings or photos support removing them.
How to Read Your Estimate Line by Line
Put the estimate in a spreadsheet and record, for each line:
- Description - what is the work?
- Code or reference - is one provided?
- Unit and rate - per square foot, per day or per item.
- Quantity - does it match the area that is actually damaged?
- Extension - rate times quantity. Check the math yourself.
Red Flags to Look For
- Any line item with a vague description
- Equipment listed without the number of days
- Square footage that does not match your affected area
- Several similar lines that could be one item
- Administration or overhead charges that are not explained
- Charges for work not yet performed, with no contract saying when
What to Do If Something Looks Wrong
Raise it in writing. A calm email or letter asking the contractor to explain or revise specific lines is easier to track than a phone call. If you cannot resolve it, tell your insurance company and ask what documentation they need. Your state insurance department can explain your rights.
Official Sources
Getting Help
ClaimCure is an independent educational resource, not a licensed adjuster, attorney or contractor, and this is not legal, insurance or financial advice. You can request a free estimate check through the contact form or try the free estimate checklist tool.