The Pros and Cons of Working with Insurance Restoration Contractors
Homeowners surveying the damage of their home weighing their options to rebuild.
If your home is damaged by a storm how do you know what to do next ?
As most Florida residents know, storms can be dangerous and damaging. Going through a bad storm is a scary thing, and dealing with the aftermath can be overwhelming, especially if your home has sustained damage.
Both dealing with the insurance company and getting the necessary repairs on your home are stressful and time-sensitive projects.
Many people choose to use an insurance restoration contractor to repair their homes after a storm. These individuals can play a crucial role in storm recovery but they may not always be the best choice.
Is hiring an insurance restoration contractor the best move for you? Let’s talk about the pros and cons of hiring an insurance restoration contractor.
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What is an Insurance Restoration Company?
Insurance restoration companies work directly with your insurance company to see what is covered and to quickly handle repairs. They are often the first ones to come out to your home after a storm, and they can help with clean-up and repairs. They know what to look for to prevent mold growth and further water damage (although often they overstate the damage to get more money).
Pros of Working with an Insurance Restoration Contractor
Experience With Insurance
Insurance contractors know how to work with insurance companies and have developed professional relationships with many adjusters and insurers. Because these contractors deal with storm-damaged homes all the time, they have expertise and experience in handling storm damage. They know what to look for and how to quickly make your home safe. They also know how to make repairs in compliance with your insurance company’s standards.
Efficiency
They are focused on acting quickly. When your home has sustained damage, you want it to be taken care of as quickly as possible, both to prevent further damage and to make it a safe and habitable place again for you and your loved ones. Many times, insurance restoration contractors are able to get to work immediately, and since they’re in contact with your insurance company, they can often cut through red tape quickly.
Assistance with Insurance Claims
Insurance restoration contractors can often act as advocates between the homeowner and the insurance company, making sure that repairs are fully covered. They know the ins and outs of insurance companies and can lend their expertise in an area where you might feel out of your depth. Note: never assign insurance benefits to a contractor.
Minimizing Damage
Because they work with damaged homes all the time, most insurance restoration contractors know how to assess a home and stabilize it so that no further damage is done as repairs take place. Storm damage restoration is done as quickly as possible.
Storm damage to bathrooms can disrupt essential daily routines—restore these critical spaces quickly for comfort and safety.
Cons of Working with an Insurance Restoration Contractor
Extra Costs
While insurance restoration contractors work with your insurance company to restore and repair your home, there may be some repairs (or upgrades) that aren’t covered. Make sure you communicate clearly and get their scope of work, warranties or guarantees, and the insurance coverage verification in writing before beginning repairs. Also note that if a restoration contractor suggests an upgrade, you may be responsible for paying for it yourself, unless it’s approved by the insurance company.
When a storm does a lot of damage to a community often these contractors will only focus on quick repairs that make the home usable, often at excessive cost due to the emergency nature of the repairs. Then they leave you to find a different contractor for the rest of the repairs.
Overstating / Exaggerating Damage Assessment
Restoration contractors will often overstate mold and water damage to maximize the claim amount. Mold and water mitigation is much more profitable for them than other repairs so they like to focus on that.
The problem comes when the insurance contractor only does the mold/water mitigation and then leaves you to hire another contractor for the rest of the repairs. The insurance contractor takes all the mold/water mitigation money and leaves you with a shortfall for the rest of the repairs.
Long Wait Times
Restoration contractors usually respond quickly to make initial repairs that are critical to prevent further damage (and very profitable for them). But then the wait time to finish the other repairs can be very long. We’ve seen insurance contractors take 2 years or more to finish projects that could be done in a few months.
Poor Quality of Work
Many times an insurance company will have a list of preferred contractors and vendors they want you to use. While this can streamline the process, it can also sometimes result in other problems.
Because these contractors have networked with the insurance company, they may be looking out for the company’s best interest over yours as the homeowner. Speed and low costs are prioritized over quality, design, material choice and service.
You don’t have to choose a particular contractor that your insurance recommends–and you can always talk to a few different people and see what they bid. Before you hire a contractor, make sure to ask for testimonials, look them up online, and make sure they have a good reputation for high-quality workmanship.
Tallahassee homeowners should weigh their options including the subcontractors of projects carefully for storm damage repairs.
Alternatives To Insurance Restoration Contractors
Hiring an insurance restoration company is not the only way to deal with damage to your home. You need to use them for quick repairs to stop further damage but then you can seek alternatives for the rest of the repairs.
A good alternative is to hire a public adjuster. These are independent companies that are expert at working with insurance companies to maximize your claim. They are paid a percentage of the claim (usually between 5 and 10%) so they are incentivized to get you as much money as possible.
Once your claim is settled you can hire your preferred contractor to make the repairs. This also allows you to upgrade and add things to the scope of work.
A lot of people take the opportunity to fully remodel their home since work is already being done. And you don’t want an insurance contractor doing higher end repairs, they are just not qualified for that kind of work.
What Should You Do?
Working with an insurance restoration contractor can provide you with peace of mind after your home has been damaged. It can often expedite recovery and get you back into your home faster. But it can also sometimes lead to delays and other complications.
Think through your options and carefully weigh the pros and cons. Make sure you do your research on any contractor you hire.
We’re Here to Help
At McManus Kitchen and Bath we do not specialize in insurance restoration, but we do understand the stress you’re under when your home has been damaged, and we are here to help with advice and recommendations. Contact us if you have any questions.
