Imagine this: You just experienced a water disaster. A pipe burst. Water rushed through your floors. Thankfully, you knew exactly what to do, so you called a reputable restoration company and informed your insurance adjuster. The crew arrives fast and works quickly: specialized machinery is set up. Damaged or uncleanable materials are removed. And the work continues until moisture levels are acceptable.
Then the paperwork follows, and you get your first bill. And that's where the surprise starts. Why are you being billed already if the "restoration" hasn't finished? Is there going to be another bill for the buildback?
As a restoration company with over a decade of experience working in South Arkansas, we have heard these questions many times before. And we also understand how this might feel: confusing and maybe even suspicious. But we assure you, this is standard practice, and today we are going to talk about it.
Let's discuss the difference between mitigation (preventing further damage) and reconstruction (restoring everything). Also, why insurers and restoration standards treat them as separate phases, how coverage works, and how to read your estimates.
What is Mitigation in a Water Damage Claim?
This is the first phase in any restoration process. The goal is to stop further damage and stabilize the property as quickly and safely as possible. The Environmental Protection Agency (EPA) emphasizes that mitigation should begin ASAP to prevent mold growth and structural damage.
Typical mitigation work may include:
- Finding and stopping the source (if it is still active)
- Extracting standing water from floors and carpets
- Removing saturated drywall, insulation, and flooring
- Setting up air movers and dehumidifiers to dry building materials
- Monitoring moisture levels until the structure reaches target readings
Because this is an emergency, it is often impossible to know the full scope before work begins. Contractors do not always know if water traveled 5 feet or 50 feet inside walls until they start opening things up. Many companies, therefore, bill mitigation on a time-and-materials basis, often using Xactimate or similar software to apply standardized line-item pricing accepted by insurers.
The result is a mitigation invoice listing items such as the number of fans, dehumidifiers, work hours, and the square footage of materials removed and dried, rather than a single flat quote given upfront.
What is Reconstruction?
This is when things start to get complicated. After mitigation is done, the damage to your home has fully stopped from spreading. But what about the reconstruction or repairs? Well, this is the "buildback" phase. The goal here is to return the property as closely as possible to its pre-loss condition.
Typical reconstruction work may include:
- Reframing damaged areas
- Hanging and finishing new drywall
- Priming and painting walls and ceilings
- Installing new flooring and trim
- Reinstalling cabinets, doors, and fixtures
Because conditions are now stable, contractors can measure and plan more precisely. It is more common for reconstruction to be handled as a fixed-scope estimate or bid rather than pure time-and-materials. Articles from restoration and construction consultants note that detailed repair estimates and standardized tools like Xactimate are often used to plan and negotiate this phase with insurers.
You will typically see a separate reconstruction estimate with line items for materials and labor, and a total price for an agreed scope of work.
Why Mitigation and Reconstruction Are Billed Separately
As a homeowner, separating the phases can feel like being billed twice. But there are practical reasons why many restoration companies and insurers do this.
1. Different Purposes and Standards
Mitigation is about reducing further loss and protecting health and safety. Reconstruction is about long-term repair and finish quality. Industry standards, such as the IICRC S500, treat mitigation and restoration as distinct parts of the water damage process, with different timelines and methods.
2. Insurance Coverage "Buckets"
Homeowners insurance usually divides property coverage into parts, such as:
- Coverage A – Dwelling: the structure itself
- Coverage B – Other structures: detached sheds, fences, etc.
- Coverage C – Personal property: your stuff, like furniture and clothing
Some policies provide extra coverage for reasonable emergency measures to protect the property from damage, with a specific limit or formula (please check your policy to find out if this applies to your case).
Separating mitigation and reconstruction invoices makes it easier for adjusters to assign each cost to the right bucket: emergency measures, structural repairs, or mold remediation, if there is a separate limit. It also helps avoid counting non-emergency repairs against small emergency-coverage caps, which could otherwise leave you with more out-of-pocket costs.
3. Speed vs. Accuracy
Because standards emphasize starting mitigation quickly, waiting for a full reconstruction estimate before drying the property could lead to preventable mold or structural problems.
By handling mitigation first, contractors can start drying within hours, then work with you and your adjuster on a detailed reconstruction plan later, when there is time to measure and price finishes accurately.
4. Claim Review and Documentation
Adjusters often review emergency invoices by asking, "Was this necessary and reasonable to dry and stabilize the structure?" Reconstruction estimates are reviewed based on "What materials are being replaced, and do they match the damage and the policy?" Keeping mitigation and reconstruction separate can simplify review for both sides and reduce delays.
The "Time Gap" between Drying and Rebuilding
Many homeowners experience a gap between the end of mitigation and the start of reconstruction. It can feel like everything has stopped at the worst possible time.
In reality, several things may be happening:
- The mitigation invoice is being reviewed and adjusted by the insurer
- The reconstruction estimate is being written, revised, and negotiated
- Coverage limits, depreciation, and deductibles are being applied
During this period, you should ask your contractor and adjuster for clear updates. Consumer resources encourage homeowners to request written explanations of what has been approved, what is under review, and what out-of-pocket costs you may face.
How to Read Your Mitigation and Reconstruction Paperwork
To feel more in control, it helps to understand what you are looking at:
- Mitigation invoice: Look for service dates, equipment counts, daily rates, material removal, and moisture readings. Check that the described work matches what you saw crews doing.
- Reconstruction estimate: Look for a clear scope (which rooms, which surfaces), quantities (square footage of drywall, flooring, paint), and unit prices. Make sure the estimate reflects the finishes you had before, unless you choose to upgrade.
- Insurance estimate or statement of loss: Compare your contractor’s scope to the insurer’s version. Ask questions about any major differences.
If something is unclear, ask both your contractor and adjuster to explain it in plain language. Many reputable restoration companies and consumer advocates recommend documenting all conversations in writing or email for future reference.
Understanding Your Two Bills After Water Damage
Now that you know why there are two separate mitigation and reconstruction bills, you understand this isn't an attempt to charge you twice, but standard procedure. After reading our article, we hope you are more confident in handling your insurance claim. If you want to learn more about reading your restoration estimate, check out our handy guide.
If you are facing water damage in Arkansas and feel confused by your mitigation bill, reconstruction estimate, or insurance paperwork, call Restore-It today for 24/7 restoration services. Our team will help you protect your home and guide you through every step of the process.
