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In the restoration industry, it’s becoming increasingly common for homeowners to opt to pay for their restoration work out of pocket instead of filing a claim. They might have concerns about how a claim will impact their premiums over the long term or they simply might not be able to afford their deductible.

Self-payment is emerging as a trend in the water damage restoration industry. Knowing this should change the way you do business from the moment you get your first call. As more loss-victims choose to self-pay, your entire team must embrace a sales mindset. Here’s what you need to know about navigating this big change.

Why Self-Pay?

Homeowners are motivated to self-pay for water damage restoration work for a variety of reasons. One change that is impacting the way loss-victims pay to have their home restored is a drastic change in how homeowner’s insurance deductibles are being calculated.

In the past, deductibles have been fairly uniform, based on industry standards and the type of coverage being offered. Since 2015, deductibles and the way they are calculated has been changing. More insurance carriers are offering deductibles based on the value of the insured home. Because of this, more homeowners are facing higher deductibles. And, when they become the victim of water damage, it makes more sense to pay for the work themselves than to pay a high deductible.

Other homeowners may not have an abnormally high deductible but they do have reservations about filing a claim. Concerns about seeing their premiums increase over the long term has them convinced that self-pay is the better option for their budget over the long-term, especially if they have the cash on hand.

Lastly, not all water damage restoration jobs will be covered by insurance. We know that insurance carriers have different policies about what line items get paid. We also know that, if water damage is gradual, occurring over time, it may be harder to have a claim accepted for restoration work.

Selling Restoration Work in a Self-Pay World

We believe that each of the factors above are behind the increase in homeowners choosing to self-pay for water damage restoration. Our restoration company Power Dry has seen a 57 percent increase in self-pay restoration work since 2015. Our industry, and the way we get paid for jobs, is changing. What does that mean for restoration specialists?

Now, more than ever, your crew members need to see themselves as members of your sales team. Although being skilled restoration specialists is essential, it cannot be the only asset they bring to your team. They must be trained to sell your company to loss-victims, especially if they’re first responders to a water damage call.

In the past, your company may have seen first responders merely as information gatherers. They take pictures, gather measurements, and record other vital information so that you can provide an accurate estimate. While these things are still a part of their job, they now have to be prepared to sell during that first response.

What does this involve? Your first responders must be trained to provide excellent customer service, to respond to loss calls within an hour, to interact with loss-victims with empathy, and to provide accurate and competitive estimates on site. Here are a few suggestions we have for training first responders to sell restoration work in a self-pay world.

The water damage industry is always changing. At times, adapting quickly can be challenging. At More Floods, we have developed resources that support business growth for our network members. To learn more about how we can help you adapt your business to turn self-pay leads in paying jobs, click here or call 1-866-667-3365.

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