Choosing Your Own Contractor vs. the Insurance Company's

One of the most important rights you have as a policyholder is the right to choose your own contractor. Insurance companies will often try to steer you toward their preferred vendor or managed repair program. Understanding why they do this — and why your own choice usually serves you better — is critical.

Why Carriers Push Their Contractors

• Volume discounts— carrier contractors often buy materials through special accounts at reduced prices
• Lower labor rates— these contractors accept lower rates in exchange for steady volume from the carrier
• Scope control— the carrier controls what work gets done and what doesn't
• Faster closures— preferred vendors are incentivized to close claims quickly

What to Look for in Your Contractor

1. Valid state contractor's license for the type of work needed
2. Workers' compensation and liability insurance
3. References from recent similar projects
4. A detailed written estimate and contract
5. Willingness to work with the insurance claim process
6. Experience with insurance restoration work

When the Carrier Pushes Back

If the insurance company says your contractor's estimate is too high, they owe you a specific explanation of which line items they disagree with and why. A blanket "your estimate is too high" is not an adequate response. Demand a line-by-line comparison of their estimate against your contractor's, and dispute each item individually.