How To Price A Water Damage Restoration Service?

Starting a water damage restoration business can be highly lucrative because you can keep the profit margins as high as 50%.

Even if you take 300 small projects in a year, you can easily make $750,000 in revenue.

But in order to make the most out of your water damage restoration business, you need to learn how to price a Water Damage Restoration service.

So make sure to read this guide till the end so that you can make handsome revenue from your business.

How-To-Price-A-Water-Damage-Restoration-Service

What is Water Damage Restoration?

Water damage restoration refers to cleaning up, drying, and restoring a house that has been flooded by water to its previous condition.

To avoid the growth of bacteria and mold, it is essential to address the affected area immediately.

Usually, the restoration is carried out in two phases: the first step is to clean and extract water from the affected area, and the second step is to repair the roof, ceiling, floor, etc., that has been damaged.

So you can charge based on a couple of factors that we are going to discuss below:

Read: 15 Foolproof Methods To Get Water Damage Restoration Leads


Water Damage Restoration Cost

On average, a water damage restoration service can cost a person anywhere between $1,200 -$5,000, and the national average cost for this service is $3000.

The cost of repair depends upon the severity of the damage. You can easily make $350 on the low end for simply restoring an overflowing toilet and up to $50,000 on the higher end for blackwater extraction, drying & clean up.

There is a wide range of factors that could help you in determining your service cost. You can price your service based on per square foot, by room, by area, etc.

And your pricing would be dependent on a couple of factors, including the level of damaged cost, materials damaged, the location, etc.

We have discussed the various ways in which you can learn how to price a water damage restoration service.

Read: How To Market Your Water Damage Restoration Business?


1. Water Damage Restoration Charge Per Square Foot

It is essential to determine the price based on per square foot because the affected area could be really less, or it could be really huge, and you might end up working a lot for lesser money in the latter case.

So, according to National Flood Services, you can charge the following price per square foot:

  • Category 1 of clean water: $3.75/sq. ft.
  • Category 2 of gray water: $4.50/ sq. ft.
  • Category 3 of black water: $7/sq. ft. 

On the basis of this pricing, you can easily calculate the cost per square foot and charge accordingly. For example, you can charge $375-$700 per 100 sq. ft. or $1,500-$2,800 per 400 sq. ft.


2. Charge by Category of Water Damage

There are basically three categories of water damage, and you need to inspect and take action quickly; otherwise, stage one damage can turn into stage two damage in no time & so on.

So let us have a look at the three categories & the pricing that you can set for them.

1. Clean Water

As the name suggests, here you will be dealing with water that has not been contaminated by any chemicals, fecal matter, etc., and which does not pose any threat to health.

This water is easy to clean and get rid of, so you should charge $3 to $4 per square foot for dealing with this.

Clean water leaks can be caused due to water heaters, leaky taps, faucets, toilet tanks, burst pipes, etc.

2. Grey Water

Grey water is also called sullage, and this type of water is usually contaminated with detergents or any chemicals which can cause a potential threat to health.

This leak can be caused due to overflowing appliances, an overflowing toilet, etc.

You’ll charge around $4 to $6.50 per square foot for this service, along with additional costs pertaining to repair-related damage.

3. Black Water

This is worst of all & this kind of water is contaminated, contains a lot of bacteria & poses a threat to health.

This leakage can be caused due to floods, storms, sewage leaks, leaks from plumbing systems, etc.

Also, if this water comes in contact with any furniture, carpets, clothing, etc., then you might need to replace the item altogether.

To render this service, you can charge $7 to $7.50 per square foot, along with the additional cost of repairing and replacing infected items.


3. Water Restoration Charge by Class

There are 4 types of classes based on which you can price your service. Let us discuss them one by one:

1. Class 1

Class 1 type of damage is the easiest to deal with. It usually includes damage caused just in a single section of only one room, with little or no damage to the wall, carpet, etc. You can charge anywhere between $150 to $400 for this.

2. Class 2

Class 2 type includes damage caused to an entire room, including the walls up to 12 inches. You can charge $500 to $1,000 for this type of damage as it will take more time for you to clean up and dry.

3. Class 3

In this category of damage, the water usually reaches to more than one room and causes damage to walls, ceilings, subflooring, furniture, etc. You can charge $1,000 to $3,000 for cleaning this type of damage.

4. Class 4

This one is the most expensive type. In class 4 damage, the water reaches almost everywhere in the house and damages the structural materials of the house, including the hardwoods, bricks, etc.

Cleaning up this one takes a lot of time and labor, so you can charge $20,000 to $100,000 for this service.


4. Charge Based on Area & Objects

Water damage affects anything and everything that comes in contact with it. Here is a list of the most common repair charges that you can set for yourself.

Area of the HomeEstimated cost
Sheetrock$5-$8 per sq. ft.
Carpets$150 to $500
Drywall$300 – $800
Ceiling$350 – $1,250
Bathroom fixtures$150 – $350
Plumbing$1,000 – $4,000
Roof$400 – $1,700
Basement$500 – $80,000
Floors$200 – $500

You can charge based on any of these single damages or a combination of one or more depending on the damages that occcured.


5. Flood Damage Repair Charge by Room

Water damage is most common in areas that are more prone to water leaks, such as bathrooms, laundry rooms, Kitchen, etc.

So you can set a charge based on the type of room too. Let us have a look at the charge of water damage restoration based on the room:

Area of the HouseRepair Cost
Bathroom$500 – $4,500
Basement$2,000 – $85,000
Living Room$1,500 – $6,000
Laundry Room$1,000 – $5,500
Basement$2,000 – $85,000

6. Water Damage Repair Cost by Area

Water damage does not affect just one area or in the same intensity. It might affect the floors a lot, and the walls a little, and so on.

This can make pricing your service a bit challenging. But you can take into account the following price structure for more clarity:

Area of RepairEstimated Cost
Floor$200 – $2,000
Ceiling$325 – $1,100
Subfloor$250 – $750
Roof$350 – $1,400
Wall$275 – $2,200
Foundation$2,000 – $10,000

7. Type of Floor

Different types of floors require different types of cleaning and labor, so you cannot keep a single price for all kinds of floors.

The ideal way would be to price your service based on the type of floor you are fixing.

So you can charge $200 – $1,200 for Vinyl floor, $600 – $2,000 for Hardwood, $200 – $2,000 for tiles and $450 – $2,000 for carpet. 

Read: How To Get Your Water Damage Restoration Business Registered?


8. Type Of Wall

You will have to charge a different price for restoring different types of walls, as the cleaning, restoring, painting, and other costs differ from wall to wall.

Here’s an idea as to how you can price your service based on the type of wall:

Type of WallRepair Prices
Drywall$275 – $485
Cinder Block Wall$650 – $1,250
Plaster$500 – $1,000
Wallpaper (Single Room)$960 – $2,200
Brick Wall$525 – $1,100

9. Labor Costs

If you are running a water damage restoration business, then you must have a team. You can price different prices for different services.

For example, your roofer can charge $35 – $90 per hour, a painter can charge $40 – $60 per hour, the electrician and carpenter can charge $40 – $120 per hour, and the plumber can charge $75 – $130. 


10. Mold Restoration and Removal Charges

If the water is left unattended for too long, then it can lead to mold. Molds are not good for health and should only be carried out after inspection.

In some states, the person who is carrying out the water restoration is not allowed to deal with the mold too.

It usually requires a mold inspector, who would inspect the mold first, and will take the necessary actions then. One can charge $1,100 to $3,400 for mold removal and restoration.


Conclusion

So if you have a water Damage Restoration Business, then you can price your service based on the above-mentioned factors.

You can use one or more methods to set your price and create a package even.

The intention of this guide was to help you by giving you an idea as to how you can go about pricing your service. We hope you found it useful.


FAQ’s

Does homeowners insurance cover water damage?

Yes, homeowners insurance covers water damage to some extent.

Is Water Restoration business in demand?

Yes, this business is in demand as homeowners can’t tackle this problem themselves and need professionals who can help them restore their houses.

The demand for this service is especially high in areas more prone to floods, storms, etc.

Is Water Restoration business profitable?

Yes, this business is very lucrative. You can keep a profit margin of up to 50% and earn up to $750,000 in revenue with just small jobs.

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