If your home has been damaged and your insurance claim is approved, your insurance company will likely recommend a contractor to handle the repairs. After spending hours on paperwork and frustrating phone calls just to file the claim, it may be tempting to accept the first contractor they suggest. One less thing to worry about, right?
However, just because your insurance company is presenting their contractor as your only choice doesn’t mean it’s true. When it comes to choosing a contractor, you have options—and it may be in your best interests to explore them. Learn more about what you should and should not do when hiring a contractor for an insurance claim.
Are You Required to Use the Contractor Provided By Your Insurance?
It’s important to establish right away that you are not required to use the contractor provided by your insurance company. As both the homeowner and policyholder, you are legally entitled to choose whatever contractor you want to carry out repairs on your property. This may be the contractor provided by your insurance, or this may be one of your choosing. Whatever the case, the “preferred” contractor your insurance recommends is a suggestion, not a requirement.
There are some exceptions to this, of course. It’s important to double-check the terms of your insurance policy, as there may be conditions or clauses in there that limit this right. If there are no problems with your policy, then make sure to communicate your decision with your insurance company as soon as possible. If you decide to choose your own contractor, you will likely need approval from your insurance company before work can begin.
The Pros and Cons of Using an Insurance Contractor
Pros
Less Work For You
One of the most obvious benefits of using a contractor provided by your insurance is that it requires almost no work from you. All you have to do is agree, and everything from there is handled on the backend. After a long and difficult claims process, it may be nice to have something off your plate.
Pre-Vetted
Insurance companies have lists of “preferred” contractors that they work with on claims. These are contractors that they’ve established a relationship with and have likely worked with on claims before. This means these contractors have been vetted and deemed legitimate (at least by your insurance company).
Direct Billing
Most of the time, if you’re working with a contractor provided by your insurance, the contractor will just bill your insurance company directly. That means you don’t have to pay for the repairs out of pocket and then wait for the reimbursement.
Cons
Conflict of Interest
It’s important to remember that at the end of the day, the “preferred” contractor is employed by your insurance, which means they’ll have their best interests in mind—not yours. If there are disagreements about the scope or cost of repairs, they will listen to whatever your insurance company tells them to do.
Lower Quality
A contractor provided by your insurance will likely do the job for cheap, and not always do it well. Insurance companies are trying to pay you as little money as possible, so they likely won’t splash out on a thorough contractor who uses high-quality materials and techniques.
No Choice
As mentioned above, when you go with a “preferred” contractor, you don’t get to make any choices. While this may be good if you want less work to do, it may feel frustrating if you already have a contractor you prefer or don’t like the one your insurance has assigned you.
When Should You Use Your Own Contractor?
Although it may be a little more work on your end, you may find that hiring your own contractor is the right decision. You should strongly consider hiring your own contractor if:
- You want someone specific: You may have a contractor in mind whose skills and expertise perfectly match your repair project. You already know, trust, and have a relationship with this contractor, and would feel comfortable working with them.
- You want more control: When you choose your own contractor, you have more control over the quality of the craftsmanship and materials that are being used on your property. This can provide peace of mind knowing your standards are being met.
- You want to protect your investments: As mentioned, contractors provided by your insurance aren’t guaranteed to do a good job. If you’re worried about protecting your property (and your investment), then you’ll want to be sure the repairs are done right the first time.
- You don’t trust your insurance company: If you don’t trust your insurance company, that’s okay—you shouldn’t. Insurance companies don’t have your best interests in mind and will try to do things as cheaply as possible. The repairs will get done, but not always in a way that benefits you.
How to Choose Your Own Contractor
Every insurance claim situation is different, and as a result, you may feel more or less inclinced to use the contractor provided by your insurance. And that’s okay! At the end of the day, it’s your money and your property on the line. If you decide to choose your own contractor, here is how to move forward with the process:
1. Ask for Referrals
If you’re not choosing a contractor that you’ve already worked with, then make sure to ask for referrals. Speak to family and friends to see if they have a trusted contractor. Read online reviews, or ask the contractor for references from previous clients. You’ll likely want a contractor who has experience working on insurance claims so that they understand the process.
2. Verify Credentials
Once you’ve found a contractor you like, take the time to verify their licensing and insurance. In Wisconsin, you can use the Department of Safety and Professional Services’ look-up tool to see if a contractor is licensed in the state. Simply search by their name or license number to verify the license status and other details.
3. Get an Estimate
Before you agree to work with a contractor, make sure to request a written estimate and contract that clearly outlines the scope of work, materials used, and payment. This will first have to be approved by your insurance company in order to avoid any disputes down the line.
How a Public Adjuster Helps With Contractors
If you’re considering using your own contractor, Fortitude Public Adjuster can help. We will ensure that your contractor gets approved by your insurance and that the cost of the repairs is covered. If there are any disagreements with your insurance company, we will fight on your behalf to get them solved and get you the money you deserve. Contact us today for a free consultation!
