Who Does Your Contractor Work For?

You or Your Insurance Company?

Often times, your insurance company will invite a contractor to come visit the site of your loss.  In doing so, the insurance company may rely on that contractor to prepare an estimate to repair the loss.  It might even be suggested that you hire that contractor to perform the repairs. That way, the work will go smoother, faster and get you back into your home as quickly as possible.   

But is this really a good idea?  Sure, it will make things better for your insurance company, but how does that really help you?

Is it really in your best interest to let the building contractor and insurance company decide what is best for you?  Remember, the insurance company is obligated to pay you what it costs to restore your property But, the insurance company is also looking to save as much money as possible. It wants to close out your claim for the least amount of money  it is forced to pay.

The contractor gets its jobs from the insurance company, not from you. So, when it comes time to make decisions regarding the proper way to repair your house, they might be more inclined to do what your insurance company dictates to do rather than what you  expect to do.  

The Insurance adjuster will most likely suggest that you let that contractor do the repair, telling you how much easier it will be on you.  They might tell you your loss will be repaired faster and that the contractor will work everything out with the insurance company regarding payments, decisions and other matters.

This arrangement might be good for the insurance company, but it is not good for you.

First, you must understand that the contractor is essentially working for the insurance company even though its construction contract is with you. The contractor gets multiple jobs by being recommended by the insurance company. Whether it is via the insurance company’s “preferred contractor program,” or some other similar called program, the contractor might not be getting the job due to their professional merits rather thanits willingness to work with you.

The insurance company keeps recommending the contractor because the contractor has an allegiance with them.  But shouldn’t the contractor have an allegiance to you to assure your house is rebuilt as it should be?

The better thing to do is retain a construction consultant to determine what needs to be done to properly repair your property. Then, you should find your own contractor to make the repairs.  The insurance company is obligated to pay you to repair your home, not to tell you who you can and cannot use and what work you should and should not do.

If you need help, call us, we are happy to meet with you.

Millard & Bragg Attorneys at Law P.C.
Oregon and Washington Fire Claims Attorneys
503-352-1991