Navigating Insurance Payments: A Contractor’s Guide
How Restoration Companies Can Keep Cash Flow Steady Despite Delays
In the restoration industry, insurance payments are a fact of life—and so are the frustrations that come with them. Even when you do the work perfectly and submit all the right paperwork, getting paid can be slow, complicated, and unpredictable.
Poor handling of insurance payments can quickly create cash flow crises, making it harder to make payroll, pay vendors, and keep operations moving.
The good news? With the right systems in place, you can manage the timing and processing of insurance payments much more effectively.
Here’s how to stay ahead.
1. Invoice Early, Not After the Dust Settles
One of the biggest mistakes contractors make is waiting until a job is 100% complete before billing.
In restoration—especially mitigation—it’s often possible (and smarter) to bill in stages.
Best practices:
Send mitigation invoices immediately after dry-out is confirmed, even if rebuild work will follow.
Submit invoices at agreed-upon milestones (e.g., completion of demo, rough-in inspections, etc.).
Don’t wait for all supplements to be approved before billing the base scope.
The earlier your invoice hits the adjuster's desk, the sooner the clock starts ticking.
2. Understand the Carrier’s Payment Process
Different insurance carriers and TPAs have different approval workflows—and some are notoriously slow. Knowing the process for each major carrier helps you set better expectations and timelines.
Key steps to map out:
Required documents (photos, work authorizations, estimate approvals)
Who needs to approve (field adjuster, desk adjuster, claim supervisor)
Average timeline from invoice submission to payment release
Whether mortgage company endorsements are required on checks
Tip: Keep a cheat sheet by carrier or TPA. Your admin team should know the drill before they even send the invoice.
3. Track Outstanding Payments by Job, Not Just in Bulk
It’s not enough to know that you’re “waiting on $200,000 in receivables.” You need to know which jobs, which payers, and where they are in the process.
Use an accounts receivable aging report that:
Breaks out balances by job
Flags overdue payments
Includes notes on last follow-up action
Without job-level tracking, payments fall through the cracks—and slow-paying carriers take even longer.
4. Follow Up Relentlessly (and Professionally)
Many restoration contractors hesitate to follow up too aggressively for fear of upsetting the client or carrier relationship.
But the reality is: squeaky wheels get paid faster.
Create a follow-up schedule:
First follow-up: 14 days after invoice submission
Second follow-up: 30 days after invoice submission
Escalation to supervisor or client advocate after 45 days
Always stay polite and professional—document all communications so that, if needed, you can escalate with a paper trail.
5. Educate Homeowners on Their Role
Sometimes, the delay isn’t the insurance company—it’s the homeowner sitting on the check.
Train your project managers to coach customers through the process:
Let them know when to expect checks.
Remind them that checks often require both their signature and the mortgage company’s.
Provide clear, easy instructions for endorsements and check handling.
The smoother you make it for homeowners, the faster you’ll get paid.
6. Have a Plan for Mortgage Company Held Funds
If the check is made out jointly to the homeowner and their mortgage company, expect delays.
To speed it up:
Have prewritten instructions you can give homeowners.
Provide help gathering documentation (completion certificates, lien waivers).
In some cases, work with third-party services that expedite mortgage endorsements for a fee.
Don’t assume homeowners know what to do—it’s often their first claim experience.
7. Forecast Your Cash Based on Payment Realities
You can’t fix slow insurance payments overnight.
But you can forecast cash flow based on realistic payment timelines and plan your expenses accordingly.
Use rolling cash flow forecasts that take AR aging into account
Model “best case” and “worst case” scenarios
Build enough working capital or a line of credit buffer to handle lags
Anticipating payment lags is smarter (and less stressful) than hoping every invoice gets paid on time.
Need Better Visibility Into Your Cash Flow?
At Kiwi Cash Flow, we help restoration companies forecast cash, monitor receivables, and plan for insurance payment delays—so you’re never caught off guard.
👉 Want to get ahead of the cash flow curve? Schedule a call with us today.