How Do I Price My Restoration Services?
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 3 min read
If you're starting or growing a restoration business, one of the most important questions you'll face is: how do I price my restoration services? Whether you're offering water damage restoration, fire cleanup, mold remediation, or general property restoration, setting the right price is key to staying competitive, profitable, and professional.
In this guide, we’ll walk you through the key factors that influence restoration business pricing, common pricing models, and how to ensure your rates reflect both your value and your costs.
Why Restoration Business Pricing Matters
Pricing restoration services correctly ensures:
You cover your labor, equipment, and material costs.
You remain competitive in your local market.
You build trust with clients through transparent and fair quotes.
You maintain profitability and long-term sustainability.
Factors That Influence Restoration Service Pricing
Here are some of the most common variables restoration contractors consider when setting prices:
1. Type of Restoration Work
Water damage restoration may be priced differently than fire or mold remediation due to the complexity, equipment, and time involved.
2. Job Size and Scope
Larger projects require more labor, materials, and time. Pricing should scale accordingly.
3. Location and Market Rates
Local competition and regional cost of living can impact what customers expect to pay.
4. Labor and Equipment Costs
Factor in wages, subcontractor fees, and rental or ownership costs of specialized restoration equipment.
5. Insurance and Licensing
Having proper insurance for restoration contractors not only protects your business—it can also be a selling point that justifies your pricing.
Popular Pricing Models in the Restoration Industry
Flat Rate Pricing
Ideal for small, predictable jobs. You charge a fixed amount based on average time and materials.
Hourly Rate
Common for labor-intensive jobs. Be sure to include travel time, setup, and cleanup in your estimate.
Per Square Foot
Used for mold remediation or water damage restoration. Rates vary depending on severity and materials affected.
Insurance-Based Pricing
Many restoration jobs are covered by homeowner’s insurance. In these cases, pricing often follows industry-standard estimating software like Xactimate.
Using a Restoration Service Cost Calculator
Online tools can help you estimate job costs based on inputs like square footage, damage type, and labor rates.
How Insurance Impacts Your Pricing Strategy
Having the right insurance coverage can help you:
Win more contracts (especially with commercial clients).
Protect your business from liability.
Justify higher rates due to added professionalism and risk management.
At Wexford Insurance, we specialize in helping restoration contractors find tailored coverage that fits their business model. Whether you're just starting out or scaling up, we’ll help you find the right protection.
Here are the key types of insurance restoration businesses should consider:
General Liability Insurance – Covers third-party injuries and property damage.
Commercial Auto Insurance – Protects vehicles used for business operations.
Commercial Property Insurance – Covers damage to your office, warehouse, or equipment storage.
Workers’ Compensation Insurance – Required in most states; covers employee injuries on the job.
Equipment Insurance – Protects your restoration tools and machinery from theft or damage.
Need Help Building Your Pricing Strategy?
If you're still figuring out your pricing model, check out our Restoration Business Plan Template to help you map out your services, costs, and revenue goals.
Call to Action
Ready to protect your restoration business with the right insurance? Reach out to Wexford Insurance today for a free consultation. We’ll help you find coverage that supports your pricing strategy and gives your clients peace of mind.
