After a flood or major leak, most homeowners are relieved when a restoration company steps in to “handle everything” with the insurance carrier. On the surface, it sounds like a stress-free solution — but too often, the reality is very different.
In many cases, these companies take full control of billing and communication with the insurance adjuster, leaving the homeowner completely out of the loop. The result? Inflated invoices, questionable charges, and homeowners stuck with surprise bills they never saw coming.
How Insurance Billing in Restoration Actually Works
When a water loss is filed as an insurance claim, restoration companies usually submit an itemized invoice or estimate directly to the insurance carrier. These invoices are often created using a pricing platform called Xactimate, which standardizes costs for materials, equipment, and labor.
There’s nothing inherently wrong with that system — it’s designed to keep billing consistent. The problem arises when companies inflate the scope of work or charge for services never performed, assuming the customer will never see the invoice. Because they’re dealing directly with the insurer, they rely on the fact that most homeowners will never request a detailed copy.
When the Homeowner Asks for the Invoice
Here’s where it gets concerning: in many of these cases, when a homeowner asks for a copy of their invoice, the company either ignores the request or claims that it’s “between them and the insurance company.” That’s a red flag.
You, as the policyholder, have every right to see what’s being billed under your name and claim number. You are the insured party — not the contractor, not the adjuster, and not the vendor. Any legitimate company should have no issue sharing that invoice with you line by line.
Overbilling and “Phantom” Charges
Some restoration companies take advantage of the lack of transparency by padding invoices with unnecessary or duplicated charges — for example:
- Equipment left longer than required but billed at full daily rates
- Materials charged at replacement cost when repairs were minimal
- Mold or antimicrobial treatments billed but never documented
Because the invoice goes straight to the insurer, homeowners never realize what was claimed under their policy. And if the insurance company denies part of the payment — due to overbilling or unsupported charges — the homeowner can suddenly find themselves sent to collections for the unpaid balance.
The “We’ll Bill Your Insurance Directly” Trap
A common sales pitch in the industry is, “You don’t have to worry about payment — we’ll bill your insurance directly.”
While that can sound convenient, it often means the company will:
- Bypass you completely during billing
- Inflate the total claim value to maximize payout
- Blame the insurer if part of the invoice isn’t covered
- Send you the balance due, even though you never approved the charges
Homeowners assume the insurance company will handle everything, but when the carrier rightfully pushes back against inflated costs, the customer becomes the one stuck in the middle.
Why Transparency Matters — And What Sets Honest Companies Apart
At MSI, we take a completely different approach. Every customer receives a line-by-line invoice outlining each piece of equipment, material, and labor cost. Nothing is hidden, and nothing is added without documentation.
You see exactly what your insurance carrier sees — down to the drying equipment, square footage treated, and time spent on-site. That transparency ensures trust and protects both the homeowner and the insurance company from billing disputes later on.
We believe in straightforward, honest communication. If an insurance company refuses to cover a portion of the invoice, you’ll know exactly why — and what was actually performed on your property.
Protect Yourself From Restoration Billing Scams
If you’ve had water damage and plan to file a claim, here’s how to protect yourself:
✅ Always ask for a copy of the full invoice or estimate before it’s sent to the insurer.
✅ Make sure the company provides photos, readings, and documentation to support their charges.
✅ Avoid signing “direct payment” agreements unless you’ve reviewed the billing process.
✅ Choose companies that communicate clearly and give you documentation at every step.
Water damage is stressful enough — you shouldn’t have to question whether the company helping you is being honest. A legitimate restoration company will always be transparent, share their invoice, and make sure you understand every part of the claim.
📞 For transparent, professional water damage restoration and testing services, call MSI at 877-712-1600.
