Questions to Ask a Restoration Contractor Before You Hire

Is this mitigation, reconstruction, or both?

Mitigation is drying, extraction, and stabilizing the property; reconstruction is rebuilding what was removed or destroyed, framing, drywall, flooring, roofing. In Michigan, reconstruction work on a residential structure generally requires a Residential Builder or Maintenance and Alteration Contractor license from the Department of Licensing and Regulatory Affairs (LARA) under the state's Occupational Code. Ask directly which parts of your job fall into which category, and get that split in writing.

Are you licensed for the reconstruction portion, and can I verify it?

If any part of the job involves rebuilding, ask for the contractor's Michigan license number and verify it independently through LARA's public license lookup rather than taking a business card at face value. Under Michigan law, a contract entered into by an unlicensed builder is unenforceable, meaning an unlicensed contractor cannot legally collect payment for that work, which creates real risk for you if a licensing gap surfaces mid-project or after a dispute.

What happens if I don't ask this and hire unlicensed reconstruction?

Beyond the contract enforceability issue, operating as an unlicensed residential builder in Michigan is a misdemeanor. A first offense carries a fine of not less than $5,000 and not more than $25,000, or imprisonment for up to 93 days, or both, under Michigan's Occupational Code. That's the contractor's legal exposure, not yours directly, but it's a strong signal about how a business operates if it's willing to take that risk.

What does the written scope actually include?

Ask for an itemized, written scope of work, not a verbal estimate. Confirm whether the quote includes disposal of damaged materials, drying equipment and how long it will run, and any reconstruction materials and labor, so you can compare it apples-to-apples against another quote.

How will you handle my insurance claim?

Ask whether the contractor will work directly with your insurer's adjuster, and how they document damage for the claim. Good documentation practice, photos and video before removing debris, a written list of damaged items, matches the standard the National Association of Insurance Commissioners recommends for policyholders themselves, so a contractor who follows the same standard is aligned with what your insurer will expect to see.

What certifications does your team carry, and what do they actually mean?

If a contractor cites IICRC certification, know what it does and doesn't tell you: it indicates individual technicians have been trained to the industry's ANSI/IICRC S500 standard for water damage restoration procedures, which insurers, code authorities, and courts commonly reference as the accepted industry practice. It does not verify business licensing, insurance, or pricing practices; those are separate questions you still need to ask.

What's the payment structure?

Ask when payment is due relative to work milestones, and whether the contractor is being paid directly by your insurer, by you, or some combination. Understanding this before work starts avoids confusion later about who owes what to whom.

Can I get this in writing before I sign anything?

Ask for the scope, the licensing information, and the payment structure all in one written document you can review before committing. A contractor confident in their answers to the questions above should have no issue putting them in writing; hesitation to do so is itself a useful signal.

Who's actually doing the work?

Ask whether the crew on site will be direct employees of the company you're contracting with, or subcontractors, and if subcontractors, whether they carry the same licensing and insurance you've just verified for the main company. A licensing check on the company name alone can miss a gap if a different, unlicensed crew is actually doing the reconstruction work under that company's name.