Water Damage Restoration Owner David Losonczi On Orange County’s Hidden Cost Crisis In Emergency Home Repairs

David Losonczi has spent over 14 years restoring damaged properties across Orange County, building Revival Water Damage Restoration from a small family operation into a trusted emergency response company. As owner and lead technician, he’s personally overseen thousands of restoration projects.

With California experiencing record insurance premium increases of 34% in 2024 and homeowners facing average water damage claims of $13,000, Jonathan Pierce (JP) of Fireball News sat down with Losonczi to discuss the pricing transparency crisis in the restoration industry.

JP: David, thanks for making time. I understand you just came from a flooding situation in Newport Beach?

Losonczi: Just wrapped up initial extraction. Category 3 sewage backup – the homeowner got three quotes ranging from $8,000 to $22,000 for the exact same work. That’s the problem we’re seeing daily.

JP: You mentioned this is a family business?

Losonczi: My father taught me this trade over 20 years ago. I took over 14 years ago. Back then, pricing was straightforward. Now, with storm chasers and franchise operations flooding Orange County, homeowners don’t know what’s fair anymore.

JP: The average water damage claim hit $13,000 last year. What should Orange County homeowners actually expect to pay?

Losonczi: Following industry standards, Category 1 clean water runs $3-4 per square foot. Gray water is $4-6.50, black water costs $7-7.50 or more. Here’s what homeowners don’t realize – 99% of the industry uses Xactimate pricing software, same as insurance companies. When someone quotes $15 per square foot for clean water, they’re banking on you not knowing standard rates.

JP: After January’s atmospheric rivers caused $500 million in damage, out-of-state restoration companies flooded into Orange County. What’s the impact?

Losonczi: Devastating. These companies do aggressive door-to-door sales, demand huge deposits, then disappear or do substandard work. They don’t understand Orange County’s unique construction – like post-tension slab foundations in Irvine and Mission Viejo. We see homes where they painted over water stains without addressing moisture. Six months later, there’s $30,000 in mold damage insurance won’t cover.

JP: Speaking of mold, how critical is that 24-48 hour response window?

Losonczi: It’s everything. Mold starts forming within 24 hours in coastal humidity. Proper drying isn’t just running fans – you need commercial dehumidifiers, moisture monitoring, antimicrobial treatments. When companies quote $2,000 for “complete dry-out” of 2,000 square feet, they’re not including proper equipment. Professional restoration starts at $9 per square foot for a reason.

JP: As a licensed general contractor, you handle extraction through reconstruction. How does that affect pricing?

Losonczi: Saves homeowners thousands. Most restoration companies subcontract reconstruction, adding 20-30% markup. We handle everything in-house. For typical Category 2 damage affecting 1,500 square feet, homeowners save $4,000-6,000 by avoiding multiple contractor markups.

JP: What about luxury properties in Newport Beach with custom materials?

Losonczi: High-end properties require specialized expertise. Restoring water-damaged hardwood runs $7-25 per square foot. Designer wallcoverings, custom millwork – these need specific protocols. We’re transparent about costs upfront. Some companies lowball initially knowing they’ll hit you with change orders once work begins.

JP: What red flags should homeowners watch for regarding predatory pricing?

Losonczi: Large upfront deposits – legitimate companies bill insurance directly. Prices significantly outside Xactimate standards. No detailed written scopes. Pressure to sign immediately. And the big one – companies without IICRC certification handling Category 2 or 3 water damage.

JP: How many Orange County restoration companies maintain IICRC certification?

Losonczi: Less than 40% have properly certified technicians. Without proper certification, work might not meet insurance requirements, leaving homeowners paying twice for repairs.

JP: You offer direct insurance billing. Why don’t all companies?

Losonczi: We handle all documentation and negotiate with adjusters. Companies that don’t either lack expertise or prefer cash jobs where they can inflate prices without oversight. We use the same Xactimate pricing insurers use – complete transparency.

JP: What’s the most egregious pricing abuse you’ve seen?

Losonczi: A San Clemente senior was quoted $45,000 for damage that should cost $12,000. The company claimed extensive mold that didn’t exist, scared her with health threats. We documented everything, helped recover her deposit, and completed the work for $11,500. Elder abuse through restoration fraud is disgusting.

JP: Climate change models predict 40% more atmospheric river events. How will this affect pricing?

Losonczi: Increased demand brings more out-of-state companies unfamiliar with California’s challenges. Pricing pressure will intensify, making it crucial to know fair rates. That’s why we publish our standard pricing – transparency protects everyone.

JP: After 14 years, what keeps you motivated?

Losonczi: Seeing families return home safely after disaster. When you’re on-site meeting three generations under one roof, you understand the responsibility. Every shortcut competitors take, every inflated invoice, erodes trust in our entire industry.

JP: Your advice for Orange County homeowners facing water damage?

Losonczi: Document everything immediately. Call insurance first, then get three quotes from IICRC-certified local companies. Never pay large deposits upfront. Verify licenses. Ask for recent references. And remember – if pricing seems too good to be true or they’re using fear tactics, walk away. Your home deserves better.

You can view Revival’s website here: https://revivalrestorationoc.com/