Preferred Vendor Restoration Programs: How They Are Structured
BYSteve Jafari, General ManagerNORTHERN VIRGINIA, MARYLAND & D.C.
A preferred vendor or managed repair program is a commercial arrangement between an insurance carrier and a contractor, and any performance guarantee that comes with it runs through the carrier rather than directly to the property owner. This guide covers how the arrangement is structured, who the contractor answers to, how a program warranty differs from one given directly, and where Virginia's consumer insurance information is. Restoration Doctor is hired by the property owner under a written agreement and invoices the property owner.
Call 1-888-29-FLOODWhat is a preferred vendor or managed repair program, contractually?
An insurance preferred vendor restoration program is a contract between your insurance carrier and a restoration company, not between you and that company. The carrier agrees to route a steady volume of claims to the contractor, and the contractor agrees to the carrier's pricing, documentation rules, response times and audit terms in return.
Carriers use several names for the same structure. You may hear preferred vendor, program vendor, managed repair, network contractor, or simply "a company we work with." The label changes and the arrangement does not. Somewhere behind the phone call there is a signed participation agreement that sets the price list, the reporting software, the performance metrics and the escalation path when a job goes wrong.
None of that is hidden or improper. What matters to a property owner is a quieter point: you are not a party to that agreement.
Who does a program contractor answer to?
A program contractor signs a work authorization with the property owner and, separately, has an agreement with the carrier. Pricing, documentation rules and the performance guarantee for program work are governed by the carrier agreement.
A drying goal is an ANSI/IICRC S500 question answered by readings taken in your building, whichever company does the work.
A contractor you hire directly has one agreement, with you. Restoration Doctor is hired by the property owner under a written agreement. We invoice the property owner. We do not represent you in your claim.
What does a program arrangement involve for each side?
For the carrier, a program means agreed pricing in advance, files that arrive in a known format, and vendors measured on the same metrics. For the property owner, a program call means dispatch is handled for you and the paperwork is already familiar to the carrier.
Because pricing and documentation rules come from an agreement the owner is not party to, it is reasonable to ask any contractor, program or not, who sets the scope and how changes to it are documented. Hidden moisture is common in older Fairfax and Arlington housing stock, where plaster, layered flooring and finished basements hold water in places a standard line-item scope does not anticipate, and it is documented with readings and photographs.
Who chooses the contractor?
Restoration Doctor is hired by the property owner under a written agreement. A contractor suggestion from anyone, including an insurer, is a name for you to evaluate; the agreement for the work is between the owner and the contractor.
Questions about what your policy says about contractors belong with your insurer, your agent, or a licensed public adjuster or attorney.
What should you ask any contractor before signing?
Whether a company is on a program or hired directly, the same written questions apply. The answers are about the contractor's own work and agreement.
- Who is the agreement with, and who will invoice me?
- What documentation will I receive: photographs, moisture readings, equipment logs and a line-item invoice?
- Which technicians assigned to my job hold current IICRC certifications?
- What does any written warranty cover, how long does it run, and who stands behind it?
Who decides what an insurance policy pays?
Your insurer alone decides what it approves and pays. Coverage depends on your policy and your insurer's decision. Questions about coverage belong with your insurer, your agent, or a licensed public adjuster or attorney.
Restoration Doctor invoices the property owner. Our documentation, including photographs, moisture readings, equipment logs and the line-item invoice, may be shared with your insurer at your request.
Who stands behind a warranty?
Work done through a program may carry a workmanship guarantee administered through the carrier under the program agreement. A contractor you hire directly warrants its own work.
Before you sign with any contractor, ask for the warranty in writing and read what it covers: how long it runs, whether it covers materials as well as workmanship, what voids it, and who answers the phone in year three. Ask which technicians assigned to your job hold current IICRC certifications, not only whether the firm does.
What documentation does a restoration contractor produce?
A line-item scope, daily moisture readings, photographs of every affected room and equipment counts with in and out dates are the record of a mitigation job. Restoration Doctor produces these as the work runs.
At the property owner's request, we share those records with the insurer.
Where can you find Virginia insurance consumer information?
The State Corporation Commission's Bureau of Insurance publishes consumer information about insurance and a process for filing complaints about insurance companies. The links are in the last section.
If the property is in the District rather than Northern Virginia, a different regulator applies. Our sister site restorationdoctordc.com covers the District.
What should you compare before you sign?
Compare the two arrangements on the same handful of points, in writing, before you commit to either: who holds the agreement, who holds the warranty, and who answers the phone when something needs attention later.
The standards and the Virginia consumer information named in this guide are public documents. Read them yourself rather than taking anyone's summary of them, including ours.
- Virginia State Corporation Commission's Bureau of Insurance consumer information
- Virginia State Corporation Commission's consumer complaint filing page
- The ANSI/IICRC S500 Standard for Professional Water Damage Restoration
| What to compare | Carrier program vendor | Contractor you hire directly |
|---|---|---|
| Who the paperwork answers to | You sign the authorization, and pricing and documentation rules come from the carrier agreement | You sign the authorization and the scope is built for your building |
| Who the warranty runs through | Under the program agreement, often through the carrier | The contractor, in writing, for a stated term |
| Who sets the price list | The program agreement | The contractor's own agreement with you, itemized line by line |
| Who documents scope changes | The contractor, under the carrier's documentation rules | The contractor, with field documentation |
| Certifications to verify | Ask which technicians on your job hold current IICRC credentials | Same question, same written answer expected |
| If something is missed | Follows the program's internal rules | You call the contractor, who answers to you |
