When disaster strikes your home—whether from fire, water damage, or severe weather—your insurance company will likely recommend their "preferred providers" to handle the restoration. While this might seem like the obvious choice, understanding the difference between preferred providers and independent contractors like Lamont Bros Design & Construction could save you thousands of dollars and months of frustration.
Insurance restoration looks different with Lamont Bros.
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What Exactly Is a Preferred Provider?
A preferred provider is a contractor that has signed an agreement with your insurance company to handle restoration work at pre-negotiated rates and terms. Think of it as the insurance company's "in-network" option—similar to how health insurance works.
The insurance company benefits because:
- They control costs through fixed pricing
- Less oversight required for the adjuster
- Contractors cut corners to keep costs low
The contractor benefits because:
- Guaranteed steady work flow
- Simplified billing directly to insurance
- Less marketing and sales effort required
- Predictable payment terms
But what about you, the homeowner?
The Hidden Costs of "Convenient" Preferred Providers
While Preferred Providers might seem like a convenient choice, there are serious trade-offs you should consider.
Design Limitations That Leave You Disappointed
When you use a preferred provider, you're essentially getting the "basic package" approach to your home restoration. Insurance guidelines typically offer minimal choices—often just "gray or brown" for finishes. Custom design work isn't offered. You’re stuck choosing between budget options and thinking, “there has to be something better than this.”
Real Example: One client came to us after their preferred provider replaced custom copper countertops with standard stainless steel. The insurance estimate didn't even recognize copper as a line item, leaving the homeowner with a significant downgrade in their kitchen.
No One Fighting for Your Interests
Perhaps the most critical issue is that preferred providers can't truly advocate for you. If they push back too hard against adjusters or fight for additional coverage, they risk being removed from the insurance company's program—and that's their primary source of business.
We've seen contractors actually forced to apologize to adjusters for "advocating too strongly" for homeowners. When your contractor's livelihood depends on keeping the insurance company happy, whose interests do you think they'll prioritize?
Ridgid Scope Limitations
Once insurance defines the scope of work, preferred providers are locked in. Even if they discover additional damage or issues during the project, they typically cannot modify the scope or facilitate change orders. This often results in incomplete repairs or substandard work that doesn't fully address all the damage.
Speed Over Quality
Preferred providers operate on a volume-based business model. Their profitability depends on closing jobs quickly and moving to the next one. This rush-to-finish mentality often means:
- Minimal on-site supervision
- Heavy reliance on subcontractors with high turnover
- Corners cut to meet aggressive timelines
- Quality issues that emerge after they've moved on
Communication Gaps That Leave You in the Dark
With preferred providers, estimates are typically sent to the insurance company first, often "scrubbed" by third-party auditing firms that remove items not allowed under company guidelines. You might not even see the full scope until after it's been approved and modified—giving you little input in the process.
No Financial Control or Flexibility
With preferred providers, insurance payments go directly to the contractor regardless of material selections or project choices. You have no say in how funds are distributed, and enhancement options are typically prohibited by vendor agreements. If issues arise or you're unsatisfied with the work, you have little financial leverage since the contractor has already been paid by your insurance company.
The Independent Contractor Advantage
True Advocacy
As an independent design-build firm, Lamont Bros works for you, not your insurance company. We research, document, and fight for proper scope and coverage. When we find additional damage or needed improvements, we advocate with adjusters to ensure your claim covers what's actually required.
Design Expertise
Unlike preferred providers who are limited to basic restoration, we bring full design-build capabilities to your project. There’s a little nuance here. Insurance companies are only going to pay to restore your home to its pre-loss condition. Within that scope, our design team can help you select finishes that complement your home’s style or improve functionality. For upgrades or improvements not covered under the restoration process, or for significant interior design services, you as a homeowner could choose to cover the difference.
Market-Value Estimates
Our process starts with an honest assessment of what your restoration should actually cost. No surprise invoices at the end—you'll know the true financial picture upfront, including any potential gaps in coverage.
Quality Control
We maintain long-term relationships with vetted subcontractors and provide in-house superintendents who ensure quality throughout your project. Every aspect of the work is overseen by professionals who meet our legal and performance standards.
Transparency and Communication
You'll receive estimates upfront, reliable timelines, and proactive communication throughout the process. We believe homeowners should be informed partners in their restoration, not left guessing about progress.
What About the Convenience Factor?
We understand that working with preferred providers seems easier—they handle the insurance paperwork, and there's less coordination required on your part. However, this convenience often comes at a significant cost in quality, scope, and final results.
At Lamont Bros, we handle all insurance coordination while maintaining our independence and advocacy role. You get the convenience without sacrificing quality or control over your project.
Making the Right Choice for Your Home
Choosing between a preferred provider and an independent contractor isn't just about cost—it's about control, quality, and confidence in the final result. Your home is likely your largest investment. When it's damaged, you want it restored properly, not just cheaply.
Questions to ask yourself:
- Do you want basic restoration or thoughtful design that improves your space?
- Is someone advocating for your interests or the insurance company's?
- Are you comfortable with minimal oversight and communication?
- Do you want market-value work or the cheapest option that meets minimum standards?
The Bottom Line
Insurance companies promote preferred providers because it's convenient and cost-effective for them. But convenient for your insurance company doesn't necessarily mean best for you.
At Lamont Bros Design & Construction, we believe you deserve a partner who fights for your home to be restored the right way—with quality materials, expert craftsmanship, and designs that enhance your living space for years to come.
