When water damage strikes, insurers and policyholders work hard to protect what matters most. For both, restoring contents over full replacement may prove the better option, both financially and emotionally.

“Restoration typically costs significantly less than replacement,” says Mike Case, director of operations at Blue Kangaroo Packoutz. “Industry standards show it usually runs about 20-35 percent of the replacement cost.”

Case points out there’s also an emotional factor where sentimental value is attached to the specific item, meaning new isn’t always better than old. Recognizing the value of contents restoration after a water damage event can help insurers more quickly make policyholders whole, and improve their overall claims experience.

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Faster Recovery and Lower Policyholder Frustration 

In addition to lowering claims costs, restoration also speeds up recovery.

“The restoration process is generally much faster than replacement,” says Case. “It allows affected areas or items to be salvaged and returned to a pre-loss condition more quickly.”

When customers need to search for item replacements, especially for sentimental items, their frustration can grow. That dissatisfaction often gets directed at insurers, putting both reputation and policyholder retention at risk.

“When we do an initial scope on a loss, we’ll ask the customer, ‘What’s most important to you right now?’” says Case. “Many times, they’ll point to sentimental items. We can take those out, restore them, prioritize them and return them right away. It won’t erase the fact they’ve experienced a potentially devastating loss, but it helps begin the healing process.”

He also notes that the environmental impact of a replacement may be a consideration. Restored items stay out of landfills, thereby reducing disposal costs for insurers and supporting sustainability goals.

Reducing Secondary Damage and Claims Costs 

Working with a restoration specialist can make a large difference when getting the policyholder back to pre-loss condition quickly.

“There are a lot of companies that are a ‘jack of all trades, master of none.’ Using a team focused solely on contents restoration gives you the best possible outcome,” says Case. “It helps reduce damages, especially secondary damages.”

Contents specialists know how to restore items properly, and can quickly recognize when something can’t be saved. This expertise helps avoid unnecessary expenses and lowers claims costs. Case also explains that specialists are trained not just in packing but also in proper cleaning techniques, ensuring that items aren’t just visually restored but are also safe, which matters especially when dealing with contaminants such as soot or mold.

Communication also plays a major role in the policyholder’s experience and satisfaction.

“We communicate from the beginning what we’re going to do, then we let the customer know what we’re doing, and finally we explain what we did,” Case says. “That way, there are no surprises.”

Creating that predictability and steadiness in the claims process allows insurers to build trust, manage costs, and support a faster recovery for policyholders, which leads to greater satisfaction and long-term retention.

For more insights from the Blue Kangaroo Packoutz team of experts, click here.

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Nicki Howell, Sponsored by Blue Kangaroo Packoutz

Nicki Howell is a freelance writer with over a decade of experience writing about credit unions, finance, commercial real estate and technology.