Safe Cleanup Checklist

🧾 How to Read a Fire Restoration Estimate (with Sample Breakdown)

Created by House Fire Solutions – Helping Homeowners Understand Their Fire Damage Estimates and Get Fair Value

After a house fire, you’ll receive one or more restoration estimates from your contractor, public adjuster, or insurance company.
These documents can look confusing — full of codes, line items, abbreviations, and hidden costs.
This guide breaks down how to read, understand, and compare estimates so you can make sure you’re getting fair, complete compensation.

🏠 1. Overview: What a Fire Restoration Estimate Is

A fire restoration estimate is a detailed cost document outlining how much it will take to repair, replace, and restore your home after a fire.
It should include:

Scope of work: What will be done
Quantities: How much material or labor is required
Unit cost: Price per foot, per hour, or per item
Totals: Labor, materials, overhead, profit, and taxes

Most insurers and contractors use Xactimate (industry-standard estimating software).
Each line in the estimate has codes that represent tasks like demolition, cleaning, painting, or rebuilding.

📋 2. Typical Structure of a Fire Restoration Estimate

A professional estimate is usually broken down into sections:

Section	Description
Header	Contractor’s info, claim number, date, address, insured info
Summary	Total cost, taxes, depreciation, and net claim amount
Room-by-Room Breakdown	Individual estimates for each damaged space
Line Items	Specific materials and labor costs per task
Photos / Diagrams	Visual evidence supporting each cost
Notes & Exclusions	Clarifications about what’s included or excluded

🧱 3. Sample Estimate Breakdown (Simplified Example)

Below is a sample structure you might see in a real fire restoration estimate generated from Xactimate or Symbility:

Line #	Room / Area	Description of Work	Code	Quantity	Unit	Unit Price	Total
1	Living Room	Remove drywall (½”)	DMO490	250	SF	$1.15	$287.50
2	Living Room	Install new drywall (½”)	DRY120	250	SF	$2.25	$562.50
3	Living Room	Prime and paint walls	PNT350	250	SF	$1.50	$375.00
4	Kitchen	Remove damaged cabinetry	CAB650	1	EA	$225.00	$225.00
5	Kitchen	Replace upper/lower cabinets	CAB680	1	EA	$3,250.00	$3,250.00
6	Kitchen	Clean smoke residue from ceiling	CLN420	120	SF	$0.75	$90.00
7	Hallway	Odor removal – ozone treatment	ODR220	1	EA	$250.00	$250.00
Subtotal							$5,040.00
Overhead & Profit (O&P)							+10% / +10%
Sales Tax							+8.5%
Total Estimate							$6,070.00

💬 4. Key Terms You Need to Understand

Term	What It Means	Why It Matters
Scope of Work	What’s covered in the project	Defines what the contractor will (and won’t) do
Line Item	Each specific task or repair	Shows exactly how costs are calculated
Depreciation	Reduction in value due to age/wear	Affects how much you get upfront
RCV (Replacement Cost Value)	Total to replace damaged items new	The full amount you’re entitled to under RCV policies
ACV (Actual Cash Value)	RCV minus depreciation	The amount paid before proof of replacement
O&P (Overhead & Profit)	Extra 10% + 10% markup	Should be included if 3+ trades are involved
Allowance	Estimated placeholder for unknown cost	May require receipts to adjust later
Scope Creep	Extra tasks not in the original estimate	Can cause disputes if not documented
Supplement	Additional claim submitted for missed damage	Ensures you’re paid for overlooked repairs

🧰 5. Common Areas Included in Fire Estimates

Fire restoration estimates typically include separate sections for:

✅ Structural Repairs: framing, roofing, walls, flooring, drywall
✅ Smoke & Soot Cleaning: walls, ceilings, HVAC, ducts, insulation
✅ Odor & Air Quality: ozone, thermal fogging, air scrubbers
✅ Contents Cleaning: furniture, electronics, textiles
✅ Water Mitigation: dehumidifiers, pumps, drying equipment
✅ Electrical & Plumbing: rewire, replace outlets, inspect systems
✅ Demolition & Debris Removal: dumpster fees, labor
✅ Reconstruction: rebuild, repaint, reinstall fixtures

💵 6. Understanding Overhead, Profit, and Depreciation

Overhead & Profit (O&P):
Contractors typically add 10% + 10% for project management and business expenses.
Insurance companies often resist paying O&P unless multiple trades are involved (e.g., drywall + electrical + flooring).
👉 Always verify it’s included if your contractor uses multiple crews.
Depreciation:
This is value withheld until you show proof you’ve replaced the damaged item.
Example:
RCV (New Value): $10,000
Depreciation: $2,500
ACV (Paid Now): $7,500
Recoverable Depreciation (Paid Later): $2,500 after repair proof

🧾 7. Red Flags in a Fire Restoration Estimate

🚫 Missing or vague descriptions (e.g., “repair wall” without measurements)
🚫 No overhead or profit listed (hidden cost)
🚫 Low unit prices compared to market rates
🚫 Missing line items like cleaning or odor removal
🚫 No reference to permits, inspection fees, or taxes
🚫 Large “miscellaneous” or “lump sum” line items
🚫 Estimate doesn’t list who performed the inspection
🚫 No scope for contents cleaning or HVAC decontamination

🧠 8. How to Compare Multiple Estimates

Step	What to Check	Why It’s Important
1	Align room-by-room categories	Ensures fair comparison
2	Check material quantities (SF, LF, EA)	Avoid undercounting
3	Compare unit prices	Exposes lowball bids
4	Verify O&P inclusion	Ensures full payout
5	Confirm permits and cleanup are included	Prevent surprise add-ons
6	Ask for a summary per trade	Easier for adjuster review
7	Review for missing categories	Protects from incomplete restoration

📑 9. Questions to Ask Your Contractor or Adjuster

How was this estimate prepared — onsite inspection or software only?
What version of Xactimate (or Symbility) was used?
Are your line items based on local market rates?
Why were certain rooms or materials excluded?
Are all permits, debris removal, and taxes included?
How do you handle change orders if costs increase later?
Is overhead and profit already included in the total?
Does this estimate reflect RCV or ACV values?
Can you provide an itemized breakdown per trade?
Will I receive a final invoice matching this estimate?

🧾 10. Sample Summary Page (Estimate Recap)

Section	Subtotal
Fire Damage Repairs	$45,000
Section Subtotal Fire Damage Repairs $45,000 Smoke & Odor Cleanup	$8,000
Water Mitigation	$3,500
Demolition & Debris	$2,500
Contents Cleaning	$6,000
Electrical & HVAC	$4,000
Permits, Taxes, & Fees	$1,000
Subtotal	$70,000
Overhead (10%)	$7,000
Profit (10%)	$7,700
Total Estimate	$84,700

💡 11. Pro Tips from House Fire Solutions

✅ Always get at least two independent estimates to compare.
✅ Ask your contractor to walk through the estimate line by line with you.
✅ Keep a digital copy of all versions — initial, supplemental, and final.
✅ Use House Fire Solutions™ templates to track scope changes and approvals.
✅ Never approve a “lump sum” bid without detailed breakdowns.
✅ Ask for clarification on every code or abbreviation you don’t understand.

💬 Final Advice from House Fire Solutions

A clear, detailed estimate is the foundation of a fair insurance payout.
If you don’t understand it — question it.
If something feels missing — document it.
Transparency and detail protect your recovery.

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