After water damage or a fire, your insurance company will probably give you a phone number and say "call our preferred vendor." It sounds helpful. It is not always in your best interest.
Here is why, and how to choose a restoration contractor who works for you.
Why "Preferred Vendors" Work for the Insurance Company, Not You
Insurance companies maintain preferred vendor programs for one primary reason: to control costs. Preferred vendors agree to provide services at predetermined rates set by the insurer. Their primary business relationship is with the insurance company, not with you.
That creates a few problems:
- They may underestimate damage. Independent restoration professionals routinely find that claims double or triple once a thorough assessment is done. Preferred vendors may lack the incentive to push back on the insurance company's initial scope.
- They follow preset drying protocols. Insurance companies use formulas to determine how much equipment and how many drying days they will approve. These formulas may not match the actual conditions of your home.
- Speed over thoroughness. Preferred vendor programs prioritize fast claim closure. That does not always mean your home is properly restored.
You Have the Right to Choose Your Own Contractor
In Michigan, you have the legal right to hire any licensed contractor for your restoration work. Your insurance company cannot:
- Require you to use their preferred vendor
- Raise your rates because you chose your own contractor
- Deny your claim because you did not use their recommendation
Michigan law requires insurers to be fair and reasonable, conduct timely and unbiased investigations, and work with the homeowner to adjust claims fairly.
What to Look For in a Restoration Contractor
Certifications That Matter
The gold standard is IICRC certification (Institute of Inspection Cleaning and Restoration Certification). Look for these specific credentials:
- WRT - Water Damage Restoration Technician
- FSRT - Fire and Smoke Damage Restoration Technician
- ASD - Applied Structural Drying Technician
- AMRT - Applied Microbial Remediation Technician (for mold)
A certified technician will have an ID card with their name, photo, certification number, and expiration date. Ask to see it. Verify it through the IICRC directory.
Watch out for the phrase "trained to IICRC standards." That often means they attended a class but never passed the certification exams.
Proper Insurance and Licensing
Any restoration contractor working on your home should carry:
- General liability insurance
- Workers' compensation insurance
- A valid Michigan contractor license
- EPA lead certification (required for homes built before 1978)
Ask for certificates of insurance and verify them.
Red Flags to Watch For
- Demands full payment upfront. A reputable contractor will never ask for 100 percent of the cost before work begins.
- No written estimate or scope of work. Everything should be documented in writing before work starts.
- Cannot provide references. A good restoration contractor will readily supply at least three references from similar projects.
- Slow response time. Water and fire damage worsen by the hour. If a company cannot respond quickly to your call, find one that can.
- Offers to handle your insurance claim for you. In Michigan, public adjuster activities are regulated. A contractor who is both doing the restoration work and adjusting your claim may have a conflict of interest.
- No IICRC certification. This is the baseline credential for professional restoration work.
Questions to Ask Before Hiring
- Are you IICRC-certified? Can I verify your certification number?
- How long have you been doing restoration work? How many projects like mine have you completed?
- Do you carry workers' comp and general liability insurance?
- Can you provide three references from similar restoration projects?
- What is your response time for emergencies?
- Who will be on site managing my project each day?
- Will you provide a written scope of work and detailed estimate before starting?
- How do you handle communication during the project?
- What is your payment structure?
- Do you work directly with my insurance company?
- Are you a preferred vendor for any insurance companies?
- What happens if you discover additional damage during the project?
Why Local Matters for Restoration
A local contractor knows Michigan building codes, understands our climate (frozen pipes, ice dams, spring flooding), has relationships with local suppliers, and can respond faster to emergencies. National chains and out-of-area companies may lack this knowledge.
SW Construction: Insurance Restoration Done Right
SW Construction handles insurance restoration for homeowners in South Lyon, Novi, Milford, Brighton, Northville, and across Oakland County. We are a licensed Michigan residential builder (#2623-008181), we work directly with your insurance company, and Steve personally oversees every restoration project.
If your home has been damaged by water or fire, call (248) 804-5884 or contact us online. We will assess the damage, provide a detailed scope of work, and help you navigate the insurance process.