Contracts Matter

Restoration Documentation is Imperative to Claims

Recently, I dealt with the termination of a restoration contract that reinforced an important lesson: contracts matter, and so does respecting professional time. A homeowner contacted us for help with an existing insurance claim after seeing the results we achieved for a neighbor.

From the start, I explained that as contractors, our role is to document damage, prepare estimates, and support the scope of work - not interpret policy coverage. I even recommended hiring a public adjuster. Still, over the next month, we spent countless hours inspecting the property, writing estimates, documenting damages, and communicating with the insurance company.

Eventually, exactly as I suspected, the homeowner decided not to move forward with repairs and terminated the contract. Years ago, after dealing with situations like this repeatedly, we added a professional services clause to our contract. If substantial time is invested and the contract is canceled, there is a fixed fee for the professional work already performed. Not a percentage of the claim. Not an AOB. Simply compensation for documented time and services.

After sending the final invoice, I received a threatening letter from the homeowner’s attorney claiming the contract was illegal while simultaneously offering nearly the full amount owed to settle the matter. Ironically, the disagreement ultimately came down to roughly $250. Thankfully, cooler heads prevailed, the invoice was resolved, and everyone moved on professionally. The biggest takeaway is this: restoration contractors deserve to be compensated for their time, knowledge, documentation, and expertise — not just the physical labor performed on a property.

Documentation matters.

Communication matters.

Contracts matter.

And operating in good faith matters.