Raplor Brochure - Flipbook - Page 22
RA P LO R
COMMON QUESTIONS
MY INSURANCE INSISTS THAT I USE ONE OF THEIR
PREFERRED CONTRACTORS?
Understanding the Signi昀椀cance of the ‘Preferred Contractor List’
for Homeowners and Property Owners
In the intricately regulated realm of the insurance industry, direct
provision of contracting services is prohibited by law. This leads
insurance companies to forge partnerships with third-party
contractors, creating what is commonly known as the ‘Preferred
Contractor List.’ Through this practice, insurers extend certain
bene昀椀ts to their clients, including potential discounts or
warranties, should they opt for a contractor recommended by
the insurance provider.
Employing a contractor from your insurance company’s roster of
preferred vendors can offer several advantages, with expedited
service being a notable one, but in numerous cases, vendors
enlisted on an insurance company’s preferred list commit to
providing services at signi昀椀cantly discounted rates for the
insurance provider.
While being part of this preferred list and offering substantial
discounts to the insurance company, there is no guarantee that
the vendor can effectively restore the property with the remaining
funds allocated.
Consequently, the contractor might be inclined to limit necessary
repairs to a bare minimum.
It’s important to recognize that the insurer’s compilation of
preferred vendors can serve as a mechanism to manage costs
and potentially constrain policyholders from selecting their
own contractors. This restriction arises from the insurer’s preestablished reduced rates negotiated with these vendors.
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