Locating a contractor to perform repairs, restorations or replacement to your home after a disaster can be a dauting endeavor. You want the work done as quickly as possible, especially if the home is uninhabitable, but you also want the highest quality work possible. In some instances, your insurer may have a network of preferred provider and may recommend one of them to perform the work. The question is – can you trust them?
An insurance company recommended contractor isn’t automatically a bad idea. Many of the contractors trusted by insurers provide high quality work. Conversely, another contractor may be locally-based and provide even better repairs at the same cost. Another thing to consider is that some insurance companies offer clients a discount on premiums if they use contractors referred by the insurer. Choosing that option obligates you do so.
Things to Consider
Insurance companies are committed to keeping costs low to increase profitability. That’s their prime directive. That can mean the preferred contractors with which they work will perform repairs at a lesser cost. The contractor’s priority becomes the insurer, since the company is the entity paying them. That opens up the potential for using lower cost materials.
Another concern is availability of materials and number of jobs the contractor has already lined up. Local contractors may have access to different suppliers that can expedite material acquisition. Repairs may also take longer, depending on the work load the insurer has placed on the preferred contractor.
Research and Due Diligence
The majority of insurers don’t disclose their association with a preferred provider. The contractor may have agreed to work at a discount or rely solely on an insurer for their livelihood. A preferred contractor will typically do more to please the insurer than the homeowner. It’s important for homeowners to perform due diligence, research, and compare insurer-recommended contractors and local contractors.