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   Restoration Insurance Billing 101
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                <h1>
                    Restoration Insurance Billing 101
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                    By
                    <strong>
                        John Reeves
                    </strong>
                    &middot; Published in Restoration Guide SoCal
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                <p style="font-size:18px; color: var(--muted);">
                    Direct insurance billing is the difference between a restoration job that costs you a $1,500 deductible and one that costs you $8,000 upfront with reimbursement to chase. Understanding how the billing works helps you ask the right questions before signing.
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                <h2>
                    How direct billing works
                </h2>
                <p>
                    You assign benefits to the restoration company (an AOB &mdash; Assignment of Benefits &mdash; form). The contractor invoices the insurance carrier directly. The carrier pays the contractor. You pay your deductible. This is the standard model for water mitigation in California.
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                <h2>
                    California's AOB rules
                </h2>
                <p>
                    California regulates AOB forms tightly compared to some other states. The form must include specific disclosures, you have a right to cancel within a defined window, and the contractor can't sue your carrier directly under most AOB structures. These protections exist because of past contractor AOB abuse in other markets.
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                <h2>
                    What's covered vs. what's billed
                </h2>
                <p>
                    Mitigation (water extraction, drying, antimicrobial, documentation) is almost always covered for sudden-and-accidental events. Rebuild work (drywall replacement, paint, flooring) is also covered but billed separately, often by a different contractor. Some California restoration companies are full-service (mitigation + rebuild); many specialize in mitigation only.
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                <h2>
                    The deductible reality
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                <p>
                    Most California homeowners policies have $500 to $2,500 deductibles. On a $5,000 mitigation invoice with direct billing, your out-of-pocket is your deductible.
                    <a href="https://socaldry.com" rel="noopener">
                        a SoCal restoration dispatch service
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                    and most professional restoration companies confirm this on the initial call.
                </p>
                <h2>
                    Red flags
                </h2>
                <p>
                    Contractors who demand full payment upfront. Contractors who claim no deductible is required. Contractors who pressure you to sign AOB documents before any work has started. The
                    <a href="https://www.insurance.ca.gov" rel="nofollow noopener">
                        California Department of Insurance
                    </a>
                    publishes consumer guides for spotting contractor fraud in disaster scenarios.
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                        JR
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                        <strong>
                            John Reeves
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                            Restoration industry consultant with IICRC certification (S500, S520, ASD). Based in Orange County.
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