MODULE 1: DOCUMENTATION FUNDAMENTALS

Work Authorizations

Lesson 1.2 - The Billing Blueprint

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The Most Important Document

Without a properly signed work authorization,
you're setting yourself up for:
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The Timing Rule

The work authorization must be signed
BEFORE work begins.
Not during the job. Not two days later.
Before you start.
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What Happens When You Don't

A midnight basement flood emergency

$1,500 lost
Emergency response fee reduced because they couldn't verify
the homeowner authorized services on that date.
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Three Critical Functions

1
Legal Authorization
Gives you legal permission to perform work on someone else's property. Protects you from liability claims.
2
Assignment of Benefits
Allows you to bill insurance directly and receive payment directly. No chasing homeowners.
3
Setting Expectations
Documents scope, potential costs, and customer responsibilities. Prevents disputes later.
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Key Sections: Property Information

What to Include:
  • Property owner's name
  • Property address (and mailing address if different)
  • Phone numbers and email
  • Insurance company name and policy number
  • Claim number (if available)
  • Date of loss
This allows insurance to immediately verify the claim when you submit your estimate.
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Key Sections: Emergency Services

Services to List (with checkboxes):
  • Water extraction
  • Structural drying
  • Mold prevention
  • Contents manipulation
  • Demolition of affected materials
  • Containment setup
Checkboxes let the customer clearly see and approve each type of work.
Prevents "I never authorized you to remove my cabinets" arguments.
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Key Sections: Scope & Assignment

Scope of Work
Document affected areas:
Kitchen, bathroom, basement, etc.

Note affected materials:
Drywall, flooring, insulation, cabinets
Assignment of Benefits
Language that allows you to bill insurance directly.

"I hereby assign all insurance benefits to [Your Company]"

Check your state's AOB regulations
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Key Sections: Payment Terms

Customer's Financial Responsibilities:
  • Customer is responsible for their deductible
  • Customer is responsible for amounts not covered by insurance
  • Customer is responsible for payment if claim is denied
This protects you from customers who think insurance pays for everything.
Get it in writing upfront.
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When Customers Hesitate

Three common reasons and how to address them

Don't Understand
Take time to explain each section. Walk them through it. Show transparency.
Worried About Costs
Explain it's not a final bill. It's permission to do work and bill insurance.
Want to Wait for Insurance
Explain water damage can't wait. Mold grows in 24-48 hours. Insurance expects immediate response.
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Get the Right Signature

Always have the authorization signed by the
property owner or someone with legal authority
A tenant usually can't sign
unless they have written permission from the landlord.

Getting the wrong signature can invalidate the whole document.
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Your Work Authorization Template

In the resources section for this lesson,
you'll find the complete template.
Download it
Customize it with your company information
Use it on every single job
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Key Takeaways

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Coming Up Next

Lesson 1.3: Dry Log Systems

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MODULE 1: DOCUMENTATION FUNDAMENTALS

End of Lesson 1.2

Work Authorizations

See you in the next lesson!
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