Using Your Own Contractor on an Insurance Claim Explained

Using your own contractor on an insurance claim can be a bit tricky, but understanding the process can help you navigate it smoothly. According to the insurance industry, you're free to choose your own contractor for repairs, but the insurance company may not always agree.

Your insurance policy will typically outline the terms and conditions of using your own contractor, so it's essential to review your policy before making any decisions. Some policies may require you to get pre-approval from the insurance company before hiring a contractor.

You can expect the insurance company to inspect the damage and provide an estimate of the repairs needed, which may influence their decision to approve your chosen contractor.

The insurance claim process can be overwhelming, but understanding the steps involved can make a big difference.

First, you'll need to notify your insurance company about the damage or loss, usually within a certain time frame, such as 24 to 48 hours, depending on the policy.

Your insurance company will assign an adjuster to assess the damage and determine the extent of the coverage. The adjuster will inspect the property and take photos and notes.

The adjuster will then provide a written report detailing the damage and the estimated cost of repairs. This report is usually sent to both you and the insurance company.

You'll need to provide any additional information or documentation requested by the adjuster, such as receipts or witness statements.

Once the adjuster's report is complete, the insurance company will review it and determine the amount of the insurance payout.

In Texas, you generally have the right to choose your own contractor for repairs covered by your insurance policy. Texas law generally supports the policyholder's right to choose their contractor.

You can select a reputable contractor that you feel comfortable working with, and gather multiple estimates to review their qualifications and experience. Check references and assess their expertise in handling the specific repairs needed for your property.

To maintain open communication with your insurance company, notify them of your chosen contractor and provide necessary documentation, such as estimates and contracts. This will help demonstrate your contractor's qualifications and the scope of the repairs.

In California, the law has specific requirements for insurance adjusters. According to Insurance Code – Section 14039, an insurance adjuster may not receive payment from a contractor who obtains a contract for any claim they are adjusting.

Here's a breakdown of the key points to keep in mind:

It's always a good idea to review the terms and conditions of your insurance policy for any specific provisions or limitations related to contractor selection. You should also consult with the Texas Department of Insurance or a licensed insurance professional for the most up-to-date information and guidance regarding contractor selection in Texas.

You generally have the right to choose your own contractor for repairs covered by your insurance policy.

In Texas, you have the freedom to select a reputable contractor that you feel comfortable working with. You can gather multiple estimates, review their qualifications, check references, and assess their experience and expertise in handling the specific repairs needed for your property.

You can choose between picking a contractor that's recommended by your insurance company or hiring another contractor. Either way, the contractor officially works for you, not your insurance company.

In Texas, insurance companies cannot require you to use their preferred contractor or a contractor from their network. However, they may still need to review and approve the estimates and proposed repairs.

Here are some key points to consider when selecting a contractor:

In California, contractors need to be licensed by the Contractors State License Board (CSLB).