Restoration Success Demands Both Technology and Trust

October 21, 2025 / 5 min read

The restoration industry is experiencing what might be described as a perfect storm: Contractors across markets report declining claim volumes while simultaneously grappling with an influx of well-capitalized new players and rapidly evolving technology. Beneath these surface-level disruptions lies a more fundamental truth: The companies thriving today are doubling down on what has always mattered most.

Contractor-discussing-restoration-with-homeowners

The complex reality behind declining claim volume

When restoration professionals discuss reduced claim volumes, they’re not imagining things. But the causes are more nuanced than a simple market downturn. Multiple factors are converging to reshape claim patterns in ways that demand strategic responses, rather than hopeful waiting.

Consider the growing trend of higher deductibles, with hurricane and wind/hail deductibles now commonly reaching 1% to 5% of dwelling value, and in some high-risk coastal areas, up to 10%. These percentage-based deductibles create economic barriers that prevent many homeowners from filing claims for smaller losses (Verisk 2024 Year in Review)

The push toward higher deductibles goes hand in hand with rapidly rising premiums for policyholders. Our Executive Insights Report shows the average premium per policy increased another 9% in 2024 after rising by 12% in 2022 and 2023. These hikes amplify real concerns for policyholders—not only the financial strain of keeping up with rising costs, but also the growing anxiety about being dropped by their insurer. A recent article found that as many as 50% of policyholders¹ are concerned they will be dropped by their insurance carrier. This fear compounds the impact of rising deductibles, as more policyholders choose to absorb costs themselves rather than risk losing coverage.

Meanwhile, the restoration market has seen significant consolidation and new market entrants, including private equity-backed firms with sophisticated financial backing. This creates intensified competition for what may genuinely be a smaller pool of available claims.

Technology as an amplifier, not a replacement

The rapid advancement in estimating technology—from centralized operations to AI-powered automation—represents perhaps the most significant shift our industry has witnessed. Yet the goal isn't to eliminate human involvement; it’s a force multiplier.

For example, what does Verisk’s claims estimation software, Xactimate^®, produce? An estimate, nothing more. This reminds us that precision matters, but so does context, relationship, and the ability to set proper expectations. Technology can handle the technical heavy lifting—the data entry, calculations, and documentation that consume so much time today. What it cannot do is sit with a family whose home has been damaged, explain complex processes with empathy, and provide the reassurance that comes from genuine human connection.

The most successful restoration companies are already recognizing this shift. They’re moving their experienced estimators away from purely technical roles and positioning them as relationship managers and client advocates. These professionals retain their construction knowledge but focus primarily on customer experience, expectation setting, and ensuring clients feel supported throughout what is often an incredibly stressful life event.

The three pillars of restoration success

In this evolving environment, three elements separate successful restoration companies from those struggling to adapt:

First, expectation setting. How you frame the restoration process from the initial contact sets the tone for everything that follows. Clients need to understand not just what will happen, but when, why, and how they’ll be supported through each phase.

Second, experience management. How you make clients feel remains the ultimate differentiator. While technology can streamline workflows and reduce errors, it cannot replace the comfort that comes from knowing a knowledgeable professional is personally invested in your recovery.

Third, results delivery. The final outcome must validate the trust placed in your team. What are the results? Because at the end of the day, poor results can unwind how you made them feel and the expectation that you set from the beginning.

Verisk’s commitment to contractor success

At Verisk, we recognize the importance of a healthy, balanced ecosystem, where everyone, from contractors to carriers, can deliver exceptional results for policyholders. Our mission is to keep the insurance ecosystem strong and growing, so all participants thrive.

Many of our pricing data and services experts are former restoration professionals who understand firsthand the realities of working in flooded basements and managing complex reconstruction projects. We use this experience to develop tools and insights that help contractors deliver quality outcomes while operating more efficiently.

We’re investing heavily in solutions that streamline contractor workflows, provide actionable business insights, and leverage technology to eliminate repetitive tasks. But we do so with a clear principle in mind: “First, do no harm. Always do no harm.” Every advancement must enhance rather than complicate the work you do.

The technology we’re developing focuses on automation that handles routine tasks while preserving the human elements that create trust and satisfaction. When AI can complete 80% of an estimate automatically, your teams can focus on the 20% that requires human judgment, relationship skills, and the kind of nuanced problem-solving that technology can’t replicate.

Thriving in the new reality

The restoration industry’s current challenges represent a fundamental evolution toward more sophisticated, competitive, and technology-enabled operations. Companies that view this as merely a difficult period to endure are missing the opportunity to build stronger, more resilient businesses.

The best positioned contractors for long-term growth are those investing in professional development, strengthening client relationships, and relentlessly pursuing operational excellence. They understand that in an industry where everyone uses similar equipment and follows comparable processes, how you make clients feel during their most vulnerable moments becomes the defining competitive advantage.

As your strategic data and technology partner, Verisk remains committed to helping you succeed in this evolving environment. We’re not just developing better tools—we’re empowering you to deliver the kind of exceptional service that turns a challenging situation into a demonstration of your expertise, compassion, and commitment to making things right.

The future belongs to restoration professionals who combine technological sophistication with genuine human connection. And that’s the foundation upon which we’re building tomorrow’s solutions.

Ready to build your competitive advantage in today’s restoration market?

The tools and insights you need to streamline operations while delivering exceptional client experiences are here today. Discover how Verisk’s property estimation solutions can help you focus on building trust and delivering results that set your business apart.

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