Preferred Vendor -vs – Independent Contractor
It’s Your Choice, You can select your own contractor
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Insurance Preferred Vendor
Has a special agreement with the insurance company to work at discounted prices, in return for future work. This arrangement can create a conflict of interest.
Who Do They Work For?
- Loyalty to Insurance Company.
- Goal is to reduce costs for insurance company, in return, promised additional work.
- Scope of work needed is dictated by the insurance company’s cost expectation.
- Preset company policy states structures should take only 3 to 5 days to dry properly, regardless of conditions and materials and how long it actually takes to dry.
- Work Volume, Cost Savings, Relationship with Insurance Company is the top Priority
Independent Restoration Contractor
Like RestoPros of Northeast Georgia, an independent contractor works for the policy holder and is not influenced by the insurance company’s containment practices. Our objective is to do whatever is necessary to do the job right.
Works for You, the Policy Holder
- Loyalty to Customer.
- Goal is to return structure to pre-loss condition at a reasonable and fair cost.
- Scope of work needed is dictated by science, third party validated site data, and IICRC standards.
- Conditions and materials are taken into account, amount of drying time determined by moisture content readings. Ensures your property is returned to pre-loss conditions.
- Safety and Health of you, your family and your home is the top priority
ABC News Report – Homeowner’s Experience with Preferred Vendors
State Farm Sued by Homeowners
A Mission Viejo couple is suing State Farm Insurance and 2 other preferred vendors after they say the companies neglected to properly take care of their home after water damage.
They were told the structure was dry, but two weeks later they started to smell mold in their home. What happened next was a nightmare for the homeowners.
View News Video
Learn the facts before you choose and hire a company to do your water damage restoration.
Should I Use a Preferred Vendor?
While it may be tempting to use an insurance company’s preferred vendor – who do they really work for? You or the insurance company? Are they more concerned about returning your structure to a pre-loss condition, or preserving their relationship with the insurance company in order to get more job referrals?
Can I Choose My Own Contractor?
Yes, you can choose your own restoration contractor. A qualified independent contractor, like RestoPros of Northeast Georgia, will provide everything the insurance company needs but their loyalties are to the property owner. A competent restoration contractor like RestoPros of Northeast Georgia, will document the damage, provide a scope of work, test results and bill based on industry average prices. RestoPros of Northeast Georgia will handle everything for the policy holder, and meet with your adjuster to go over every step of the process.
Why do Insurance Companies have Preferred Vendor Programs?
Simple, the insurance company keeps a preferred vendor program for one reason only – to save them money. On average, claims double, triple or even quadruple once an independent and competent restorer is on the project. Not because the independent contractor is dishonest, on the contrary, because they have the skill to find all the damages and the resolve that the preferred vendor lacks to bring them to the carriers attention.
Don’t Preferred Vendors Present a Conflict of Interest?
Preferred vendors operate on the inside of the insurance companies trust and in exchange, control the amount of the loss otherwise known as the loss severity. But is the contractor’s job – to ensure profitability for an insurance company? No, it is their job to find all of the required work to make the insured hole and represent it fairly to the carrier. This makes many policyholders ask, who does the preferred vendor really work for?
What Happens if a Preferred Vendor Disagrees with the Insurance Company?
While some preferred vendors may very well be very ethical, to do so increases what the carrier pays and ultimately will most likely get them removed from the program. Just ask us, we know many companies that have lost all of their preferred vendor relationships, as they have became more committed towards serving the insured interest over the insurance company’s interest.
Our Insurance Company Claims Structures are Dry in 3 Days, is this correct or a myth?
The problem? Insurance companies use a preset formula to determine how much equipment and how many days they will “allow” a structure to be dried. If you are using a preferred vendor they will be required to follow this protocol. The amount of drying time is determined only by monitoring the moisture content of the materials and advanced testing. Again, this is where an independent contractor will be able to show the data and act accordingly, and then can prove the structure is dry or not. Improperly dried structures are hazardous to the health hazards of mold and can be far reaching. A structure that develops mold growth will need to be repaired to maintain property value. And insurance companies often exclude mold or provide small caps for mold damage.
How Long does it actually take to Dry? Read More Here.
What About Testing for Hazardous Materials?
Most Property Owners, Adjusters and even contractors are not aware or choose to ignore a Georgia EPD Regulation regarding Asbestos. Floor tiles, joint compound, attic insulation, & duct work are some of the common areas you will find asbestos. Even in newer homes, asbestos can be found in materials such as laminate or vinyl floor covering. Asbestos was so widely used, it is present in many homes. Contrary to popular belief, there is no ban on asbestos containing material in the US, so even new homes may contain asbestos in different materials. Both the EPA and OSHA say that you must physically sample materials that may contain asbestos before they are disturbed. Contrary to popular belief, there is no set year or cut-off date for building construction. Though some counties place a year in their regulations, the fact is any building may contain asbestos and federal guidelines do not discriminate based on age. Georgia EPD requires Treating any content that may contain asbestos as though it does unless it is tested and can be proven it does not. At RestoPros of Northeast Georgia, we strictly follow the Georgia EPD regulations and test any property where we may be disturbing or removing materials that may contain asbestos. Contact Asbestos Technical Assistance Duty Officer Primary Phone: (404) 363-7026 to get the scoop directly from them.