Before the crew gets there
- Shut off the water first and get the area drying; TDI puts those two steps in that order for a leak.
- Write down the day you first saw the damage, because TDI says hidden water damage usually must be reported within days after that.
- Photograph the damage before repairs, with the wet items still where they are.
- Call your insurance company as soon as possible and ask what the policy says about the source of your water.
- Keep repairs temporary until the insurer has seen the damage.
- Sign nothing from a contractor before you have an estimate, since TDI lists signing first as a sign of a contracting scam.
Who dries it and who rebuilds it
Drying comes first and the rebuild second, and they're separate jobs with separate rules. TDLR's list of 41 licensing programs includes mold assessors and remediators and names no water damage program. The rebuild follows your city's permit rules. Dallas says replacing and repairing damaged siding, sheetrock or windows typically doesn't need a permit, while structural damage to roof joists, rafters or walls does.
What water damage restoration costs in Texas (estimates, not quotes)
Our model puts a whole water damage job in Texas at $1,100 to $4,825 per job, an estimate that no company has quoted. One Texas restoration company publishes a price for the job, which is fewer than the five needed to build a range from company prices, so the national guides carry the figure. The wage rows below show pay for the nearest federal occupation, and pay isn't a price.
| Item | Figure | What it is |
|---|---|---|
| Estimated range, not a quote | $1,100 to $4,825 per job | Built from 3 national published ranges, adjusted by the Texas hazardous materials removal worker wage ratio (0.84). One Texas restoration company publishes a price we could count on their own websites; where five or more price the same job, the range is the middle half of their prices, and where two to four do, the estimate is widened to take them in. Coupons, specials and figures a page gives as an average are not counted. Basis: no state company sample (one counted Texas company price for this job), national estimate only. |
| Hazardous materials removal worker wage, Texas mean | $22.88 an hour (United States mean: $27.13) | May 2025 BLS pay for the occupation we match to restoration crews, shown so the wage ratio behind the estimate can be checked. |
Estimated range. Built from national published ranges (3 sources), adjusted by Texas's hazardous materials removal worker wage ratio to the US (0.84, BLS May 2025). Not a quote. One Texas restoration company publishes a price we could count on their own websites; where five or more price the same job, the range is the middle half of their prices, and where two to four do, the estimate is widened to take them in. Coupons, specials and figures a page gives as an average are not counted. Only one Texas company publishes a price we could count for this job, so the range is our national estimate alone. Full method. Prices as of Oct 23, 2026.
What a Texas policy covers
TDI says most homeowner and renter policies cover sudden and accidental water damage, and that mold which develops on a damaged item would be covered too. Gradual leaks or seepage usually aren't covered, and neither is the mold from them. Flood damage takes a separate flood policy, and most home policies leave out mold cleanup and testing after a damaged item is removed, though an insurer may let you add that coverage for a covered loss.
The insurer's clock
TDI's claim page gives the company 15 business days to acknowledge your claim, begin its review and ask for information, then 15 business days after it gets what it needs to say whether it will pay, in writing with reasons if it refuses. The company can extend that by 45 days if it explains why, TDI can add 15 days after a weather-related catastrophe, and an agreed payment is due within five business days.
The statute counts that first step differently. A 2018 copy of Insurance Code chapter 542 gives the insurer until the 15th day after notice, not the 15th business day, so ask TDI's help line (800-252-3439) which count applies to your claim. The same copy sets 18 percent a year interest plus attorney's fees on late payment, with a different formula in suits under chapter 542A.
Public adjusters and contractors who offer to handle the claim
TDI licenses public adjusters, lets them charge up to 10 percent of the total the company will pay, and gives you 72 hours after signing to cancel. They can't act as your contractor, and contractors can't advertise that they will handle your insurance claim. TDI also says it is illegal for a contractor to waive your deductible, and reports go to the Attorney General's hotline at 800-621-0508.
When water damage can't wait
- Water is still spreading, or you can't find where it is coming from.
- The water came from a sewer line or from outside the house.
- Carpet, drywall or insulation has stayed wet for a day or more.
- A small spill you stopped and dried, with nothing left damp; photograph it for the claim.
- Surface repairs, which can wait until the insurer has inspected, since TDI asks you to hold permanent repairs until then.
Water damage work in Texas: licenses and permits
TDLR licenses mold assessors and remediators under Occupations Code chapter 1958 and 16 TAC chapter 78, and mold is the only restoration-adjacent program on its list. Drying isn't on it. TDLR doesn't say in words that water restoration needs no state license, so ask a drying company what it holds, and for mold, ask for the company's TDLR license.
Permits belong to the rebuild. Dallas separates structural damage and roofing, which need permits, from siding, sheetrock and windows, which typically don't, and in Austin's floodplain a home counts as substantially damaged when repairs cost 50 percent or more of its value before the damage.
Ask which licenses your state requires for the work, and check them with your state's licensing office before anyone starts. A credential from a private body, such as IICRC, isn't a license.
Questions people ask
How long does my insurer have to answer a water damage claim?
15 business days to acknowledge it, then 15 more once it has what it needs. TDI's page adds that the company can extend the second period by 45 days if it explains why, and TDI can add 15 days after a weather-related catastrophe. Payment follows within five business days of agreeing to pay.
Does homeowners insurance cover a slow leak?
Usually not, TDI says; sudden and accidental damage is what most policies cover. TDI names gradual leaks or seepage, and mold from them, as what policies usually won't cover. Ask the insurer which wording in your policy applies.
Can a restoration company waive my deductible?
No: TDI says it is illegal for a contractor to waive it. That covers inflating an estimate or giving a rebate or credit equal to the deductible. The insurer can ask for proof that you paid, and TDI says contractors who do it could be fined or go to jail.
What should I know before hiring a public adjuster?
TDI licenses them and lets them charge up to 10 percent of the claim payment. You have 72 hours after signing to cancel. TDI says they can't take referral fees from contractors or keep you from talking with your insurer.
Do I need a state license to clean up mold after water damage?
TDLR says areas under 25 contiguous square feet can in most instances be cleaned by people who aren't licensed. Larger areas bring in TDLR's licensing and notification rules. The mold remediation page has the exemptions.
- U.S. Bureau of Labor Statistics, OEWS May 2025: Hazardous Materials Removal Workers (SOC 47-4041), Texas, mean hourly wage Read Oct 23, 2026.
- U.S. Bureau of Labor Statistics, OEWS May 2025: Hazardous Materials Removal Workers (SOC 47-4041), United States, mean hourly wage Read Oct 23, 2026.
- RestorationMatch: how we estimate costs, Texas (editorial policy) Read Oct 23, 2026.
- TDI: When are water damage and mold covered by insurance? Read Oct 23, 2026.
- TDI: Steps to getting your home or car insurance claim paid Read Oct 23, 2026.
- Texas Insurance Code ch. 542 (Wayback copy 2018-04-06) Read Oct 23, 2026. Check with the source before you rely on this.
- TDI: Public adjusters: What to know before you hire one Read Oct 23, 2026.
- TDI: Is it OK for a contractor to waive my deductible? Read Oct 23, 2026.
- TDI: Do you know the signs of a contracting scam? Read Oct 23, 2026.
- TDLR: Regulated Industries Menu (as printed on the Mold program page and the licenses page) Read Oct 23, 2026. Check with the source before you rely on this.
- TDLR: Mold Assessors and Remediators - Laws and Rules Read Oct 23, 2026.
- TDLR: Mold Assessors and Remediators FAQs; TDLR Consumer Mold Information Sheet Read Oct 23, 2026.
- City of Dallas: Storm Damage Repair Information Read Oct 23, 2026.
- City of Austin Development Services: Emergency Permits Read Oct 23, 2026.
- TDI: FAQ: Homeowners insurance and disaster claims Read Oct 23, 2026.