The benefits of choosing your own contractor to complete insurance claim repairs?
A question we get asked frequently is: Should I choose my own contractor or the one recommended by my insurance company?
The important point to remember is, the choice is always yours. As a policyholder of any insurance company you are entitled to choose who you work with. Don’t be fooled by clever wording in your insurance policy.
However, in some circumstances you may prefer to go with their suggestion. So to help you decide we’ve highlighted the differences between using your own contractor or a company recommended by your insurance provider.
Using a contractor you know and trust
You may already have a reputable builder that you know and trust. And trust is a critical factor as you may need to leave workers in your home unsupervised.
Complete your due diligence on the company your insurance provider has recommended. Because their recommendation, in most cases, will be based on cost and not necessarily reputation. Insurance companies will not always have the time to complete checks on the companies they use, so it’s down to you!
Why do insurance companies recommend their own builders?
The insurance company’s preferred contractors offer discounts to the insurance company in return for the work they receive. Therefore because they are making less money on each contract they need to complete more of them. This is referred to as high volume/low margin contracts.
The downside to this structure is that to ensure they don’t make a loss the builder needs to complete more contracts; and to do so they may cut corners so they can complete the work quickly and move onto the next one.
This is not good news for the policyholder! You only have to look at forums to read how the outcomes of such a practice can have undesirable consequences.
Which option will complete my repairs on a like for like basis?
The insurance company’s contractor will reinstate the property on a like for like basis, no more. They will not look beyond the job in hand – remember our earlier point about completing work as quickly as possible so they can move onto the next contract.
What if I prefer to update or improve when my repairs are taking place?
If you choose to appoint your own contractor you can upgrade or replace as you see fit. You can take the opportunity to do additional work, such as switch things around or knock down walls to reconfigure the layout. You can even upgrade your fixtures and fittings such as your kitchen or bathroom suite.
Client satisfaction guaranteed!
When you appoint your own contractor via a Loss Assessor, the Loss Assessor holds the final payment in their client account. It remains there until you (as the policyholder) sign a satisfaction note to confirm the settlement of the final invoice can take place.
This means that, unlike with the insurance company’s contractor, the policyholder has some control over the work and the final payment. And should you not be entirely satisfied with the job, you don’t sign until it’s been rectified.
If you’re looking for a reputable insurance repair company or like the idea of someone to project manage your repairs call Joanne now on 01254 665333