Getting paid on insurance restoration work shouldn’t feel like pulling teeth, but for many contractors, it does.
You’ve finished the job. The homeowner’s happy. The work passed inspection. So where’s your money?
Here’s what you need to know about payment timelines for insurance claim jobs and the proactive steps you can take to keep things moving efficiently.
The Short Answer: 30 – 90 Days (But It Varies)
In a perfect world, you’ll see payment within 30 – 45 days of completing the work. But insurance restoration isn’t a perfect world.
Realistic timeline breakdown:
Fast track: 2 – 4 weeks for straightforward claims
Typical: 4 – 8 weeks for most standard restoration jobs
Slow track: 8 – 12 weeks when mortgage companies are involved
Problem jobs: 3 – 6 months or longer when claims get complicated
The timeline depends on claim type, who’s cutting the check, your documentation quality, and whether there are disputes. Use these as benchmarks, not guarantees.
What Causes Payment Delays?
Mortgage Company Involvement: When the homeowner has a mortgage, the check gets made out to both parties. For claims under $10,000-$15,000, lenders may release funds immediately. Larger claims require documentation and may be held in escrow. Some mortgage companies are efficient. Others sit on checks for weeks.
Missing Documentation: Every time an adjuster has to request another photo or clarification, you’ve added time. Multiple rounds mean weeks of back-and-forth.
Supplement Disputes: Not every supplement gets approved immediately. If the adjuster questions your pricing or coverage, you’ll need additional justification.
Adjuster Workload: After major storms, adjusters get slammed. Your file might be ready to approve but sitting in a queue behind 50 others.
Why Insurance Companies Take Their Time
Insurance companies make money through positive premium-to-claim ratios and earning interest on premiums they collect. They invest these funds in short-term assets. The longer they hold onto claim money, the more interest they earn. While this doesn’t excuse unreasonable delays, it explains why the insurance process can take time even for legitimate claims.
How to Keep Payment Moving: Steps That Work
1. Document Everything From Day One
Start taking photos before you touch anything. Document every area of damage from multiple angles.
What adjusters want to see:
- Pre-work conditions showing all damage
- Progress photos during demolition (especially hidden damage)
- Completed work from multiple angles
- Close-ups of specific repairs
Use a system that timestamps and GPS-tags your photos automatically. This creates a defensible record if questions come up later.
2. Understand Xactimate (Even If You Don’t Use It)
Most insurance adjusters use Xactimate estimating software, but many contractors don’t. This creates a challenge when comparing estimates.
If you don’t use Xactimate yourself:
Learn the software or hire someone who knows it
Work with an estimator trained in Xactimate
Ensure your estimates use line items that can be compared to Xactimate formats
Get subcontractor bids to support your pricing
Include a clear scope narrative explaining what you’re doing and why. Adjusters review dozens of claims daily and need context.
3. Build Professional Relationships With Local Adjusters
You’ll work with the same adjusters repeatedly. Treat them like professional partners, not adversaries. Good working relationships can lead to faster response times, smoother communication, and more efficient approvals.
Respond quickly when they reach out. Make their job easier by submitting organized, complete documentation.
4. Set Payment Expectations With Homeowners Upfront
Explain the payment process before you start work. Cover who the check will be made out to, whether a mortgage company is involved, that supplements may be needed, and typical timelines for their claim type.
Clear expectations prevent awkward conversations later.
5. Follow Up Strategically
Follow up at logical checkpoints: after submitting documentation, when they said they’d have an answer, or if you haven’t heard anything in 10 – 14 days.
Keep a log of all communication with dates and summaries. If you need to contact the adjuster’s supervisor or the insurance company’s contractor liaison, this record of your previous attempts matters.
6. File Accurate Supplements Quickly
When you discover additional damage, document it immediately and file the supplement right away. Don’t wait until the end of the job.
Include clear before photos of newly discovered damage, explanation of how it relates to the original claim, and detailed scope for additional work.
7. Understand Depreciation Holdback
If the homeowner has a Replacement Cost Value (RCV) policy, the insurance company pays the Actual Cash Value (ACV) upfront and holds back the depreciation. You’ll only receive the depreciation payment after completing the work and providing proof, typically invoices and documentation showing repairs match the claim scope.
Most policies give homeowners 180 days to two years to complete repairs and claim recoverable depreciation. Make sure homeowners understand they need to act within this timeframe or they’ll lose access to those funds.
Red Flags That Payment Might Be a Problem
Not every insurance job goes smoothly. Certain warning signs early in the process can signal that payment might become difficult or delayed. Spotting these red flags before you start work can save you weeks of frustration and help you decide whether to proceed or negotiate better terms upfront.
From the insurance company:
Adjuster is consistently unresponsive or vague
Multiple requests for the same documentation
Significant pushback on standard pricing without explanation
From the homeowner:
Confusion about their coverage or deductible
Reluctance to file the claim officially
Pressure to start work before adjuster approval
If you spot red flags, slow down. Get clearer agreements in writing before you proceed.
What About Progress Payments?
On larger restoration jobs, negotiate progress payments tied to completion milestones rather than waiting until the end.
Payment structure example:
Initial down payment from insurance proceeds or homeowner
Payment at substantial completion of major phases
Final payment upon completion and proof of completed work
The specific percentages and number of payments vary by project size and contractor, but the principle remains: progress payments protect your cash flow, especially when the final check needs mortgage company endorsement.
Navigate Payment with Confidence
Most insurance restoration jobs pay out in 4 – 8 weeks when you handle things effectively. That’s not fast, but it’s predictable enough to build your business around.
The payment timeline isn’t completely in your control, but the steps you take from initial inspection through project completion make a significant difference. Set up your documentation system now, before your next insurance job. The time you invest upfront will help you avoid weeks of waiting on the back end.
