Fire & Water Damage Restoration Proposal Template: Win Insurance Jobs and Direct-Pay Clients

Restoration contractors operate in the hardest proposal environment in the trades. Your client is in crisis — they came home to a flooded basement, a burned kitchen, or a ceiling caved in by a burst pipe. They're scared, they haven't slept, and in many cases they're dealing with an insurance adjuster they've never met who has every incentive to minimize the payout. Your proposal has to work for two audiences simultaneously: the homeowner who needs to feel confident they hired the right person, and the adjuster who needs line-item documentation that maps directly to their software.

Get the proposal wrong and you lose the job to the franchise company that has a template. Or worse — you do the work, submit a vague scope to the adjuster, and get shorted on the claim by $6,000 because your documentation didn't support the labor hours. Restoration is a trade where a professional proposal doesn't just win jobs — it directly protects your revenue after the job is done.

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Why Restoration Proposals Are Different

In most trades, the proposal documents work you're planning to do. In restoration, the proposal also documents damage that already exists. That distinction matters enormously. Insurance adjusters are trained to scrutinize restoration scopes. They want moisture readings, not just "wet walls." They want equipment logs, not "commercial drying equipment." They want line items that match Xactimate categories, because that's the software their company uses to generate estimates — and if your scope doesn't map to their system, they'll rewrite it at a lower number.

Restoration jobs also have two fundamentally different phases: mitigation (stopping the damage, drying the structure) and reconstruction (rebuilding what was damaged). These must be separated in your proposal. If you bundle them together, adjusters will question the entire scope and you'll spend weeks in a back-and-forth that kills your cash flow. Separate scopes, separate line items, separate invoices where possible.

The other complication is documentation. A restoration job without photos, moisture readings, and equipment logs is a restoration job you'll have trouble getting paid for. Your proposal should establish that your documentation process is professional — because it sets the adjuster's expectation that you'll back up every line item.

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Sample Water Damage Restoration Proposal

Client: James and Renata Kowalski
Property: 2,200 sq ft single-family home, finished basement, Columbus, OH
Incident: Burst supply line to utility sink — Category 2 water (gray water), approximately 800 sq ft of finished basement affected
Claim number: [Provided by homeowner/adjuster]
Adjuster: [Name, contact, insurance carrier]

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Initial Assessment Summary

• Water source: Burst 1/2" supply line, utility sink, west mechanical room
• Water category: Category 2 (gray water — potential contamination from plumbing supply line)
• Water class: Class 3 — significant wetting of walls, flooring, and ceiling materials
• Areas affected: Finished basement — approx. 800 sq ft, including media room, home office, and mechanical/utility room
• Materials affected: Carpet (approx. 650 sq ft), luxury vinyl plank (approx. 150 sq ft), drywall to 24" height on affected walls (approx. 180 LF), insulation behind wet drywall (partial)
• Initial moisture readings:
  • Subfloor moisture content: 28–34% (elevated; baseline target ≤16%)
  • Wall cavity moisture at base: 22–31% (elevated; baseline target ≤16%)
  • Concrete slab: No elevation (slab dry)
• Recommended drying goal: ≤16% MC in all structural materials within 3–5 days of equipment deployment

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PHASE 1 — MITIGATION SCOPE

Emergency Services (Day 1)

• Extract standing water — approx. 200 gallons via truck-mounted extraction unit
• Remove and bag affected carpet and carpet pad for disposal (approx. 650 sq ft)
• Remove LVP flooring in mechanical room — Category 2 material, not salvageable (approx. 150 sq ft)
• Remove baseboards along affected walls for wall cavity drying access
• Perform flood cuts — remove drywall to 24" height on affected walls (approx. 180 LF = approx. 360 sq ft of drywall)
• Remove wet insulation from wall cavities (approx. 180 LF)
• Set drying equipment (see below)
• Apply EPA-registered antimicrobial treatment to subfloor, wall framing, and exposed surfaces (Category 2 protocol)

Drying Equipment Deployment

• 4 × LGR dehumidifiers (Dri-Eaz PHD 200, 200 PPD capacity each)
• 6 × axial air movers (Dri-Eaz Velo Pro)
• 1 × air scrubber with HEPA filtration (negative air, Category 2 protocol)
• Equipment monitoring: daily moisture readings, logged each visit
• Estimated drying duration: 3–5 days to reach drying goal
• Equipment pickup upon confirmed dry-out (daily readings required)

Contents Handling

• Move-out of loose furniture, electronics, and personal items from affected areas
• Contents inventoried and documented with photos prior to move
• Pack-out of soft goods (rugs, upholstered items) for off-site evaluation
• Contents stored in unaffected portion of home or off-site pod if required

Demolition Materials Disposal

• Bag and haul off drywall, insulation, carpet, and pad
• All materials classified as Category 2 — handled per state disposal guidelines

Phase 1 Investment: $9,500
Includes all mitigation labor, equipment rental for 5 days, antimicrobial treatment, contents handling, and disposal

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PHASE 2 — RECONSTRUCTION SCOPE

Reconstruction to begin after Phase 1 sign-off and moisture verification

• Replace drywall in affected areas — approx. 360 sq ft, taped, mudded, textured to match
• Re-insulate wall cavities with R-15 batt insulation (fiberglass, paper-faced)
• Install new baseboards to match existing profile
• Install new carpet in media room and home office — approx. 650 sq ft (grade to match existing or per homeowner selection, $28/sq ft installed allowance)
• Install new LVP in mechanical room — approx. 150 sq ft (waterproof LVP, grade to match existing)
• Paint affected walls — 2 coats, color-match to existing
• Replace utility sink supply line with SharkBite push-fit fitting (permanent repair)
• Final inspection and moisture verification

Phase 2 Investment: $14,500
Includes all reconstruction labor and materials per scope above

Combined Total (Mitigation + Reconstruction): $24,000

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Payment Structure

• Phase 1 deposit: $2,850 (30%) — due at mobilization
• Phase 1 balance: $6,650 — due upon Phase 1 completion and dry-out verification
• Phase 2 deposit: $4,350 — due upon Phase 2 scope sign-off
• Phase 2 balance: $10,150 — due upon project completion

Warranty

• 1-year workmanship warranty on all Phase 2 reconstruction work
• Drying equipment effectiveness guaranteed to reach target moisture levels within estimated window; if drying goal not met in 5 days, equipment remains at no additional charge until goal is reached

Exclusions

• Structural engineer assessment (recommend if subfloor deflection is noted upon inspection)
• Mold remediation as a separate scope (if mold is discovered upon demolition, a separate mold remediation scope will be issued)
• HVAC duct cleaning (recommend if ducts were exposed to Category 2 water)
• Personal property valuation or replacement (covered under homeowner's contents coverage)
• Permit fees if required by local jurisdiction

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Insurance Adjuster-Friendly Format

If this job involves an insurance claim — and most restoration jobs do — your proposal format can either make the adjuster's job easier or create friction that delays your payment. Here's what adjusters need to see:

Separate mitigation and reconstruction scopes
Adjusters process these under different coverage categories. Bundle them and you create confusion. Keep Phase 1 and Phase 2 as distinct scopes with distinct totals — even if you're doing both.

IICRC water category and class
Category 1 (clean water), Category 2 (gray water), and Category 3 (black water) determine protocol. Class 1–4 determines the extent of drying required. State both in your proposal header. Adjusters are trained on these categories, and using the right language signals that you are too.

Initial moisture readings with baseline targets
"Wet walls" doesn't get paid. "Moisture content at 28–34%, drying goal ≤16% per IICRC S500 standards" does. Include your initial readings by location and your target readings so the adjuster can see the scope of drying required.

Equipment list with model numbers and daily rate
Most Xactimate pricing is based on equipment type and days deployed. List every piece of equipment, the model number, and how many days it was on site. This maps directly to what the adjuster needs to approve the drying costs.

Daily monitoring logs (referenced or attached)
Your proposal should state that you take and log daily moisture readings — and your invoice should include those logs. This documentation is what separates a professional restoration contractor from a handyman with a few dehumidifiers.

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3-Tier Restoration Proposal Structure

Not every water damage job requires full reconstruction. Offering three tiers helps homeowners (and adjusters) understand the scope options and makes it clear you're proposing the right level of response for the actual damage.

Tier 1 — Emergency Dry-Out Only: ~$3,800
Best for: Category 1 clean water, limited affected area (under 200 sq ft), no drywall or structural material removal required

• Emergency water extraction
• Equipment deployment (2 dehumidifiers, 3 air movers, 3–4 day estimated duration)
• Daily monitoring and equipment pickup upon dry-out
• No demolition, no reconstruction

This tier is appropriate when water was caught quickly, materials aren't saturated, and no Category 2 contamination is present. If demo is needed, this is not the right scope — but it's an honest option for minor clean-water events.

Tier 2 — Full Mitigation + Demo: ~$9,500
Best for: Category 2 water, moderate affected area (200–800 sq ft), drywall and flooring removal required, no reconstruction included

• Full extraction and contents handling
• All affected material removal (carpet, drywall, insulation)
• Equipment deployment (full LGR dehumidifier array, air movers, air scrubber)
• Antimicrobial treatment
• Daily monitoring, moisture logs, documentation packet
• Does not include reconstruction — homeowner manages Phase 2 separately

This is the right option for homeowners using their own contractor for reconstruction, or when the insurance claim separates mitigation and rebuild.

Tier 3 — Full Mitigation + Reconstruction: ~$24,000
Best for: Moderate to significant damage (400–1,200 sq ft), homeowners who want one contractor to handle start to finish

• Everything in Tier 2
• Full reconstruction scope to pre-loss condition
• Flooring, drywall, insulation, paint, trim
• Single point of contact, coordinated with adjuster throughout
• Final documentation packet for insurance claim close-out

This is the most convenient option for homeowners and typically results in the smoothest insurance claim because documentation flows from one source.

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Common Restoration Proposal Mistakes

Not separating mitigation from reconstruction scope
This is the number one billing problem in restoration. Insurance adjusters process mitigation and reconstruction under different coverage buckets. If you bundle them into a single line item, the adjuster will either kick it back for clarification or — worse — approve it at a lower number that doesn't account for both phases. Always separate Phase 1 and Phase 2 in your proposal, even if you're doing both.

No moisture reading baseline
"Water damage present" is not a scope. "Moisture content at 28–34% in subfloor, drying goal ≤16% per IICRC S500" is a scope. Without baseline readings, you have no documented justification for the drying equipment you're deploying, and adjusters will question both the equipment count and the duration. Take readings on day one. Log them. Put them in the proposal.

No equipment inventory
Listing "commercial drying equipment" in your proposal is not the same as listing "4 × Dri-Eaz PHD 200 LGR dehumidifiers, 6 × Dri-Eaz Velo Pro air movers, 1 × HEPA air scrubber — 5 days." The second version maps directly to Xactimate line items and is nearly impossible to dispute. The first version invites the adjuster to substitute their own equipment pricing, which will be lower.

Vague "contents handling" language
"Contents moved and stored" tells the adjuster nothing — and tells the homeowner nothing about what happens to their electronics, furniture, and personal items. Specify: contents inventoried and documented, pack-out of soft goods for evaluation, storage location, and what happens if items are damaged during move-out. Vague contents language is also where client disputes are born. Be specific.

No documentation packet
The restoration job isn't done when the work is done — it's done when the claim is closed. A documentation packet (initial moisture readings, daily logs, before/after photos, equipment list, and disposal manifests for Category 2 material) is what gets your invoice paid at full value. If your proposal doesn't mention that you provide this, the adjuster doesn't know to expect it, and you'll be chasing payment after the fact.

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Frequently Asked Questions: Restoration Proposals

Do I need separate proposals for mitigation and reconstruction?
At minimum, you need separate scopes and separate totals within the same proposal. In many cases, especially when there's an insurance claim involved, it's cleaner to issue two separate proposals — one for mitigation at the start of the job, and one for reconstruction once you know the full scope after demo. This also makes it easier to get Phase 1 paid before you've started Phase 2.

How do I format a restoration proposal for an insurance adjuster?
Use IICRC water category and class in the header. Include initial moisture readings and your drying target. List equipment by model number and days deployed. Separate mitigation and reconstruction into distinct scopes. Use unit-based pricing where possible (per square foot of drywall, per linear foot of baseboard, per day per dehumidifier) — this maps to Xactimate and makes your invoice easier to approve.

What's the difference between Category 1, 2, and 3 water damage?
Category 1 is clean water (broken supply line, rainfall). Category 2 is gray water with potential contaminants (appliance overflow, toilet overflow without solids). Category 3 is black water with known contamination (sewage, floodwater). Category determines protocol — Cat 2 and Cat 3 require antimicrobial treatment, additional PPE, and stricter disposal procedures. Your proposal should identify the category and document why.

Should I include mold remediation in a water damage proposal?
Generally no — include it as a conditional exclusion. State that if mold is discovered upon demolition, a separate mold remediation scope will be issued. Mold remediation requires its own documentation, testing, and post-remediation verification that is best handled as a separate scope. Bundling it creates underwriting complexity and may require a separate adjuster sign-off.

How do I justify my drying equipment count to an adjuster?
Document your calculation. IICRC S500 specifies minimum equipment ratios based on square footage and water class. List the affected area, the water class, and show the equipment count matches the standard. Something like: "Class 3, 800 sq ft — IICRC ratio requires 1 dehumidifier per 200 sq ft = 4 units minimum. 6 air movers at 1 per 50–70 sq ft of affected floor area." This turns a potential dispute into a documented standard.

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Restoration proposals are the most documentation-heavy in the trades — and that documentation is what gets jobs paid, not just won. If you're building these proposals manually, re-entering the same line items every job, or losing adjuster disputes because your scope doesn't line up with theirs, Propovio is built for contractors who need professional proposals fast without starting from scratch every time. Describe the damage, build a tiered scope, and send a proposal that holds up to adjuster review — on the first submission.