How to Choose a Water Damage Restoration Company: Checklist

To choose a water damage restoration company, hire a local, established business that can prove its license (where your state requires one) and its insurance, and that gives you a written, itemized estimate before it starts. Ask who will deal with your insurer, read every form before you sign, and never pay most of the bill up front.

This guide gives you a checklist and the questions to ask, even if you are making the call in the middle of an emergency.

Safety first

Before you call anyone, make sure your home is safe. Ready.gov ↗ warns not to touch electrical equipment if it is wet or if you are standing in water, and to turn off the power only if it is safe to do so. If you smell gas, see sparking, or think the structure is unsafe, leave and call 911 or your utility.

Emergency now, bigger job later

Water damage often comes in two parts:

1. Emergency mitigation: stopping the water, pumping it out, and drying the building.
2. Repairs: replacing drywall, flooring, cabinets and so on.

Speed matters for the first part. The Texas Department of Insurance (TDI) ↗ says mold can start growing within a day after a leak, and that if you can't remove the water and dry the area yourself, you should use a service.

You may not have time to collect three bids for the emergency work. That's OK. You can hire a company for the drying only, then take more time to compare bids for the repairs.

The checklist: what to look for

1. Local and established

FEMA recommends ↗ using a local contractor, someone who is known in the community. FEMA lists "out of state, no permanent place of business, no insurance" among its contractor warning signs (FEMA ↗). TDI says bids should be on company letterhead with a phone number and an address (TDI ↗).

On Best Restoration, each company listing shows where the company is based, so you can see whether it is local or traveling in from somewhere else.

2. A state license, where one is required

Licensing rules differ a lot by state and by type of work. Some examples:

• Texas: Mold assessors and remediators are licensed by the Texas Department of Licensing and Regulation (TDLR). Licensees must keep an office with a street address in Texas (TDLR FAQ ↗). TDI also says to make sure a mold professional has a state license (TDI ↗).
• Florida: Mold assessment and remediation are covered by Chapter 468, Part XVI ↗ of the Florida Statutes. Florida's Department of Financial Services (DFS) says to verify contractor licenses at MyFloridaLicense.com (Florida DFS ↗).
• New York: The Department of Labor licenses mold assessment and remediation contractors under Labor Law Article 32 (NY DOL ↗).

Ask which license covers each part of your job, since drying, rebuilding and mold work may fall under different rules. The FTC says to confirm a contractor's license with your state or county government (FTC ↗). Best Restoration shows a license status label on company listings where state license data is available. See our state pages for Texas, Florida and New York, and our guide on whether a restoration company needs a license.

3. Liability and workers' comp insurance

If a worker gets hurt in your home, or a crew damages your property, insurance matters. The DC insurance department ↗ says to check that a contractor has liability and workers' compensation insurance and to ask for a "Certificate of Insurance." Florida DFS says contractors must have workers' comp unless they qualify for an exemption, and to get proof of insurance before signing (Florida DFS ↗).

4. A written, itemized estimate

The Insurance Information Institute (Triple-I) ↗ suggests written bids from licensed contractors that list materials and prices line by line, which also makes adjusting your claim faster. The FTC ↗ says the contract should include the company's name, address, phone number and license number, start and finish dates, and every promise made out loud. Make sure all blank spaces are filled in.

5. Clear work authorization

Restoration companies usually ask you to sign a form before they start. The DC insurance department notes that even when an adjuster calls in a contractor for emergency work, the contractor will have the homeowner sign the authorization and agree to pay (DC DISB ↗). TDI warns that some scammers call a contract an "estimate" or a "release" to get your signature (TDI ↗). Read it. Know what you are agreeing to pay.

6. Fair payment terms

• The FTC says not to pay the full amount up front, notes some states limit down payments, and says not to make the final payment until the work is done and you're satisfied (FTC ↗).
• The FTC also says never to pay for repairs or debris removal in cash (FTC ↗).
• In Texas, it's illegal for a contractor to offer to waive your deductible or work it into the bid (TDI ↗). Florida DFS says the same for Florida (Florida DFS ↗).

7. Who talks to your insurer

Ask the company exactly what it will do with your claim, such as whether it will send photos, moisture readings and invoices to your insurer. Remember that the claim is yours. In Florida, DFS says contractors may not submit a claim to your insurer on your behalf (Florida DFS ↗) and may not give policy coverage advice (Florida DFS ↗). For coverage questions, ask your agent or insurer.

8. IICRC certification (a plus, not a license)

The IICRC is a non-profit that sets standards and certifies technicians and firms in the cleaning and restoration industry (IICRC ↗). It is a private industry credential, not a state license. It can show training, but it doesn't replace a license where your state requires one.

9. Reviews and references

The FTC suggests asking people you trust for recommendations and checking with consumer protection officials for complaints (FTC ↗). TDI says to check references (TDI ↗). Read recent reviews for patterns, such as surprise charges or jobs left unfinished.

Can you choose your own restoration company?

Often, yes, but it depends on your state and your policy.

• Texas: TDI has told insurers that people with a homeowners or dwelling policy are entitled to have their home repaired by the person of their choice, citing 28 Texas Administrative Code §5.9970 (TDI Bulletin B-0017-17 ↗).
• Washington, D.C.: The DC insurance department says a homeowner may pick a contractor suggested by the insurer but is not required to (DC DISB ↗).

There can be upsides to the insurer's list. The same DC guide says a contractor the insurer already knows may get extra funding approved faster if hidden damage turns up. And in Florida, some insurers sell a preferred contractor endorsement that gives you a discount for using their approved vendors; Florida DFS says the insurer typically guarantees that work, but the endorsement comes with conditions (Florida DFS ↗). If you bought one, read it before hiring someone else.

Either way, the contract is usually between you and the company. DC's guide notes that once the claim is paid, the insurer isn't responsible for the contractor's work quality or delays.

Questions to ask a restoration company

• Where is your office, and how long have you worked here?
• What license do you hold for this work, and what is the number?
• Can you send a Certificate of Insurance for liability and workers' comp?
• Will you give me a written, itemized estimate before you start?
• What exactly does this form I'm signing allow you to do?
• How much is due now, and when is the rest due?
• What will you send to my insurance company, and what do you need from me?
• Who will be on site, and are they your employees or subcontractors?
• How will you measure and record drying?

To learn what drives the price, see our guide to water damage restoration costs. If you want to know how to spot a bad actor, read restoration contractor scams.

When you're ready, Get matched with restoration companies near you. It's free, and you can also browse companies on your own.

Frequently asked questions

Do I have to use the restoration company my insurer recommends?

Not always. Texas and Washington, D.C. regulators say you can choose (TDI ↗, DC DISB ↗). Your policy may include a preferred contractor endorsement with conditions, so check it or ask your state insurance department.

Should I get three estimates for emergency water removal?

For true emergency drying, waiting may cause more damage, since mold can start within a day (TDI ↗). You can hire for the emergency work first, then compare written bids for repairs.

Is IICRC certification required?

IICRC is a private non-profit that certifies technicians and firms (IICRC ↗). It is not a government license. Check your state's license rules separately.

How much should I pay up front?

The FTC says not to pay the full amount up front and not to make the final payment until the work is done (FTC ↗). Some states limit down payments, so ask your state attorney general or consumer protection office.

Can a restoration company handle my whole insurance claim?

It can share its records with your insurer, but rules vary by state. In Florida, DFS says contractors may not submit a claim for you or give coverage advice (Florida DFS ↗). For disputes, contact your state insurance department or an attorney.