One of the most frustrating things about water restoration is getting a call from the adjuster saying your bill is too high. During my 14+ years in the water restoration business, I have received many calls from adjusters saying my price is too high on this dehumidifier or this fan, etc. This used to bother me until I learned the secret to avoiding most of these calls, COMMUNICATION AND DOCUMENTATION. Remember that the adjuster has to justify his work to his boss and as long as the price and scope of the work can be justified, then he will be paid.
Starting the job on the right foot is important. You must always obtain a work authorization signed by the insured before starting work. A work authorization will allow some insurance companies to pay you directly or at least get your name on the check.
Then, as soon as the initial mitigation is done, call the adjuster and let them know what they did. This can be done on the way back to his office. During this conversation, let the adjuster know what he saw when he arrived and what he decided to do about it. During this conversation, I usually try to avoid talking about prices. If they ask about it, I’ll talk about it, but for me this is more of an info phone call to the adjuster. At this point, the adjuster usually hasn’t been there, so my main goal is to call him and let him know what’s going on.
Next, you should have an itemized bill. The invoice must include your business name, address (so they can mail the check), and your Taxpayer Identification Number. Each room in which the work was performed must be separated and measured to the nearest inch. Then, within each room, make a list of each item or piece of equipment. At this point it is good to comment on the items that are most questioned, such as cost of dehumidifiers, number of fans, extraction, etc. Post comments with articles, if your estimating software allows, justifying why you charge what you do for a dehumidifier or why you had 3 fans in a 6 x 6 room. Anything that might question how on it. For me, this is one of the most important parts of the billing process. Yes, it takes a long time, but the adjuster will be able to see the reasoning behind the line item. This alone can prevent most calls.
Next, include a copy of the signed work authorization and the signed certificate of satisfaction. This not only shows that the client was satisfied but that they authorized you to carry out the work. Make sure your work authorization form includes a section that allows the insurance company to pay you directly. I personally had my attorney review my form to make sure he was accomplishing what I wanted him to accomplish. I strongly suggest that you do the same no matter if he got a generic form from somewhere or he created his own form.
Another tool that helps justify your bill to the adjuster is your daily moisture readings. You must maintain temperature, relative humidity, and grains (gpp) inside, outside, unaffected area, dehumidifiers, and HVAC. By doing this, you will be able to learn about what is happening during the work. For example, several years ago we opened a new refrigerant dehumidifier and brought it directly to work. When we got there and turned it on, we started doing our psychometric readings and discovered there was a problem with the dehumidifier. It was great to find that out then and not the next day when we would have had a lot of evaporation and no dehumidification. Using grain readings can also help you prove that equipment was turned off, a door was opened that you wanted to close, a window was opened, etc. When this is used correctly, it can show the adjuster why you needed an extra day. Also be sure to include plenty of comments to accompany your readings to help explain what you saw.
To accompany your daily moisture readings, try including a graph from a data logger. Data loggers can be configured to record temperature and relative humidity as often as you like. I like to set ours to log every minute and this gives you a nice graph of what’s going on at work. When the job is complete, print the chart and return it with your invoice. As with your daily readings, a graph will help prove what you saw happening at work. (i.e. door open, window open, equipment off, etc.) Taking an hour meter reading of your equipment at various points on the job can also help prove when things were not working and should be provided as part of your documentation .
Kevin Pearson is a partner at Pearson Carpet Care. He has over 17 years of experience in the cleaning and restoration business. He is a member of various committees of the IICRC (Institute of Inspection, Cleaning and Restoration Certification) and is on the board of directors of the PCRA (Professional Cleaning and Restoration Alliance). Kevin has dried up construction in Texas, Oklahoma and Louisiana. He has extensive experience drying residential homes, but has also dried office buildings, chemical plants, historic homes, Southern Methodist University, Stephen F. Austin State University, Toyota Center (where the Houston Rockets play) and more.