Insurance companies always have a group of vendors that are on the insurance company's Preferred Service Providers (PSP) list. These vendors (puppets) are willing to let the insurance company pull their strings when it comes to your repairs after you file a property claim, IF the insurance company can persuade you to use them (it's illegal to suggest that you must)
These vendors accept lower than prevailing rates to do repair work because they receive the majority of their work from their masters, the insurance companies. So why should this matter to you?
1. PSP list contractors are more apt to accept the insurer’s scope of work, even if the contractor disagrees, because the contractor wants to receive additional work from the insurer. This leaves you open for the contractor to complete less than quality work and use less than quality materials in order to avoid losing money on your project.
2. Insurers love to brag to you that your contractor is over-charging you. The insurers attempt to enforce their price for the work. They will tell you they use an estimating software called Xactimate to determine "acceptable" pricing. What they don't tell you is that they apply a different Xactimate price list to the project, which is lower than Xactimate price lists used by non-PSP list contractors. They like to tell you they only pay what is "fair and reasonable", as if what non-PSP contractors charge is beyond "fair and reasonable". It's not, it's just more than their PSP list contractors receive.
3. Non-PSP list contractors are unable to submit a “competitive” estimate because of the insurers’ control over the scope (what the insurance company considers to be the minimum repairs that they can get by with, not necessarily what you deserve) and the price of the repair work due to their control of their PSP vendors' pricing.
Insurers hope against hope that you will turn on your chosen contractor and believe what they, the insurers, are telling you. Their goal is to "break" the relationship between you and the contractor. Then they can can pay only what they want to pay for repairs. But if you do this, break your relationship, you are left holding the bag. You agreed with what the contractor deemed necessary AND you agreed to the price being charged.
breaking up is hard to do!
Don't let your insurance company break your relationship. You only end up getting short-changed on price as well as quality.
How do we know this? We have such a good relationship with our customers that they are willing to tell us what is being said by their insurance companies in their effort to break the relationship!