When you’re running a restoration business, one of the trickiest things to get right can be your water damage insurance invoicing strategy. However, it’s also one of the most important things to get right. Your water damage insurance invoices impact everything from your cash flow to your claims approval rate and profitability. At One Claim Solution, we work with restoration contractors every day to help them improve their insurance billing processes and get paid faster and more fairly. From the water damage insurance billing experts here at OCS, here are 4 tips that will help you strengthen your restoration company’s water damage insurance invoicing.
There are very few tools more important to a restoration contractor’s water damage insurance claims strategy than an Assignment of Benefits (AOB). When you have a signed AOB, you are able to work directly with the insurance company to get paid for your water damage restoration. Without an Assignment of Benefits in place, the homeowner has to take charge of coordinating with insurance which can lead to delays, misunderstandings, and homeowners mistakenly keeping insurance payouts and leaving your invoice unpaid.
Get an AOB signed before beginning work on a water damage job. When you ask the homeowner to sign it, take the time to explain what the AOB is and why you use it. One of the common fears of homeowners in water damage crises is being taken advantage of. By providing transparency into the document, how it works, and what it will mean for the homeowner, you can help alleviate these concerns. Most homeowners are not eager to deal with their insurance provider themselves, so explaining the advantages of an AOB might even win you some points in their book.
Keep in mind that Assignment of Benefit laws vary by state. If you are based in Florida or Texas, an AOB may not be a good option for streamlining your restoration company’s water damage insurance invoicing process.
After you’ve spent enough time negotiating various water damage invoices with insurance adjusters, you start to get a pretty good idea of what kind of pushback to expect. Some adjusters will challenge specific line items, push back on labor costs, or question the necessity of certain services you performed.
Instead of allowing the frustration of repeated adjuster pushback to get to you, use the patterns you spot to your advantage. You can be proactive by submitting documentation upfront that directly addresses common water damage insurance invoice pushback. This could look like timestamped moisture readings, equipment records, or citing IICRC standards. Don’t be afraid to get creative. When your documentation is built to preempt common arguments, you’ll receive less pushback from water damage insurance adjusters and get paid faster.
Sometimes, it can be hard to spot the patterns and trends in your business’s water damage insurance invoicing when you’re too close to it. Having data analytics for your water damage insurance invoicing can make a big difference. With comprehensive analytic information, you can better predict when you will be paid, what line items will be denied, and how different carriers will respond to different invoicing strategies.
While you can track data manually, tools like OCS’s Contractor Portal make analytics easier than ever. When we were designing the Contractor Portal, we listened to our restoration contractors, reviewed what kind of software was already out there, and put our years of water damage insurance invoicing experience to use. Many of our restoration contractors have told us how valuable this real-time visibility is in helping them predict cash flow and make smarter business decisions. “There is not a software out there that will give [restoration contractors] the analytics into their accounts receivable better or more visibly than our OCS portal,” Jeremy Traasdahl, One Claim Co-Founder says.
At One Claim Solution, we often hear contractors say handling water damage insurance invoicing is one of their restoration business’s biggest pain points. If that rings true for you, it might be time to consider outsourcing restoration claims management.
One Claim Solution has been helping restoration contractors nationwide manage their restoration claims negotiation and accounts receivable for years. Our experts have gotten claims negotiation down to a science. The high volume of claims we manage for a wide range of restoration companies gives us even more detailed insight into what claims strategies work. Then, we put those strategies to work on behalf of our contractors, helping them get their water damage insurance invoices paid better and quicker. Want to see how OCS can help your business collect more, faster? Contact us today to learn more.