After a fire, flood, or major storm, contractors will appear quickly. Some of them are exactly who you need. Others are not. Knowing the difference — especially when you’re stressed, displaced, and under pressure — is one of the most important decisions you’ll make in the recovery process. Here’s a practical guide.
What to Look for in a Restoration Contractor
Michigan GC License
Any contractor performing structural repair work in Michigan is required to hold a valid Residential Builder or Maintenance and Alteration Contractor license issued by the Michigan Department of Licensing and Regulatory Affairs (LARA). Ask for the license number and verify it at michigan.gov/lara. Unlicensed contractors offer you no regulatory protection and can void your insurance coverage in some cases.
Insurance Restoration Experience — Specifically
General construction experience is not the same as insurance restoration experience. A contractor who does new builds and remodels doesn’t necessarily know how to write a supplement, work with Xactimate pricing, navigate the claims process, or advocate for your interests with an adjuster. Ask specifically how much of their work is insurance restoration and how long they’ve been doing it.
References from Similar Jobs
Ask for references from homeowners who went through similar claims — not just satisfied remodeling customers. A fire damage restoration reference is more useful than a deck-building reference when you’re dealing with fire damage.
Clear, Written Scope
Before any work begins, you should have a written scope of work that aligns with what your insurance company has approved (or is in the process of approving). Verbal promises are not binding. A contractor who won’t put things in writing is a contractor to walk away from.
Red Flags to Watch For
The Aggressive Doorstep Pitch
Contractors who appear within hours of a storm or fire, often called “storm chasers,” aren’t all bad — but pressure tactics are a warning sign. If someone is pushing you to sign immediately, telling you the deal expires tonight, or asking you to sign an Assignment of Benefits before you even understand what it means, slow down. You have time to make a good decision.
Asking You to Sign an AOB
An Assignment of Benefits (AOB) transfers your insurance rights to the contractor. This is legal in some states but has been the source of significant fraud in others. Before signing any AOB, understand exactly what you’re transferring and consult with your insurance agent. You typically do not need to sign an AOB to work with a legitimate contractor.
No License or Proof of Insurance
Never let an unlicensed contractor touch your home, especially on an insurance claim. Ask for a certificate of insurance — general liability and workers’ comp. If they won’t provide it, they don’t have it.
The “We’ll Waive Your Deductible” Offer
Contractors who offer to waive your deductible in exchange for the job are essentially committing insurance fraud — and so are you if you accept. It’s illegal in Michigan and a red flag about how they operate overall.
Questions to Ask Before You Hire
- How long have you been doing insurance restoration specifically?
- Are you licensed in Michigan? Can I have your license number?
- Do you handle the supplement process, or do I have to manage the claim myself?
- Who will actually be doing the work — your crews or subcontractors?
- What does your warranty cover and for how long?
Phase III Construction LLC has been performing insurance restoration in Southeast Michigan since 1993. GC License #262000615. We’re licensed, insured, and we handle the entire claims process from first inspection through final close-out. No pressure, no gimmicks — just honest work. Call us at (734) 237-7322.