How to Choose a Restoration Contractor (Without Getting Burned)

Storm-chasers, AOB scammers, and fly-by-night 'restoration' companies thrive after every disaster event. The vetting process below takes 20 minutes and is the cheapest insurance you'll buy on your rebuild.

After every major storm event, the FTC and state attorneys general issue warnings about disaster-related contractor fraud. The reason is simple: homeowners under stress, with insurance money in play, make decisions they wouldn't make otherwise. This guide is the vetting checklist we wish every homeowner used — even when they ultimately hire someone other than us.

Credentials that actually matter

• State general contractor's license at the dollar threshold of your project (every state is different — verify on your state's licensing board website).
• General liability insurance with at least $1M per-occurrence coverage and a current certificate.
• Workers' compensation insurance — non-negotiable. Without it, an injury on your property becomes your personal liability.
• IICRC certification for any company touching the mitigation phase (water, fire, mold).
• Xactimate proficiency for the rebuild estimator — ask to see a recent estimate (with private info redacted).

The 10 questions to ask before signing anything

1. How many losses of this type and size have you closed in the last 12 months?
2. Will the same project manager be on my job from start to finish?
3. Do you write Xactimate in-house or do you sub it out?
4. What's your typical supplemental claim approval rate?
5. Who does the demo — your crews or subcontractors?
6. What's your warranty on workmanship and on materials?
7. Can I have references from three jobs you closed in the last 6 months?
8. Will you handle communication with my adjuster directly?
9. What's your draw schedule and what triggers each payment?
10. If I'm unhappy mid-project, what's the dispute resolution process?

Red flags that should end the conversation

• Door-to-door solicitation after a storm event without a state-issued solicitor's permit.
• Pressure to sign a contract or AOB on the first visit.
• An offer to 'waive your deductible' (illegal in most states and a fraud indicator).
• Demand for full payment up front, or more than 10–25% as a deposit.
• Out-of-state license plates and no permanent local address.
• No physical office address (a P.O. box doesn't count).
• Refusal to provide a written contract with scope and price detail.
• Vague answers to questions about insurance, license, or warranty.

The Assignment of Benefits (AOB) trap

An Assignment of Benefits is a one-page document that transfers your insurance claim rights to the contractor. Once signed, the contractor controls the negotiation with the carrier, the scope decisions, and the final settlement. You become a bystander on your own claim.

There are limited legitimate uses for AOBs (some states require them for certain commercial work), but for a residential rebuild, you almost never need to sign one. A well-run contractor doesn't need ownership of your benefits to do a great job — they just need a clear scope, an authorization to work, and a payment agreement. If a contractor insists on an AOB, that alone is grounds to walk away. The National Association of Insurance Commissioners has a homeowner alert on AOB abuse worth reading.

Local vs. national vs. storm-chaser

Three categories of contractor will appear after a major loss in your area:

• Established local contractors with a permanent office, in-house crews, and 5+ years of local references. Best fit for most homeowners.
• National restoration brands with local franchises. Quality varies wildly by franchise — vet the local owner, not the brand.
• Storm-chasers from out of state who set up a temporary office for 60 days, sign as many AOBs as possible, and disappear. Avoid entirely.

For multi-state losses or commercial work, a national restoration platform can make sense. Our national mitigation arm IRS-247.com operates that way — coordinating IICRC-certified crews across markets. But the rebuild side of every project is handled by a local team with permanent operations in the market.

What a good contract should contain

• Itemized scope of work tied to the agreed Xactimate estimate, with revision dates.
• Contract price as 'agreed Xactimate amount' — not a flat lump sum that disconnects from the carrier estimate.
• Draw schedule with milestones (e.g., 25% at start of rough trades, 25% at drywall, etc.).
• Change order procedure (every change in writing, signed by both parties before work begins).
• Lien waivers issued at each draw payment.
• Workmanship warranty — typically 1 year, longer on certain trades.
• Right to terminate language for both parties.
• Dispute resolution procedure (mediation, arbitration, or court).

The 'three estimates' myth

On insurance work, you don't need three competing estimates the way you would on a kitchen remodel. The carrier's adjuster sets the scope and price via Xactimate. Your contractor's job is to match or improve that scope through documentation and supplements — not to underbid it. What you actually need is one qualified contractor who will fight for the right scope. Multiple estimates on insurance work often slow the project down without changing the dollar number.

Trust your gut

Past every credential check and every contract clause, you're choosing a partner for 4–18 months of construction in your home. If the salesperson talks past you, dodges questions, or pressures you, those traits don't improve once the contract is signed. There are reputable contractors in every market — take the extra week to find one. Our first 24 hours guide and insurance rebuild walkthrough cover what good contractor behavior looks like in practice.