Why You Should Think Twice Before Accepting a Preferred Vendor from Your Insurer

When you report a loss to your insurance company—especially something like water or fire damage—they might offer help right away.

They’ll say:

“We can send one of our trusted contractors or restoration experts. No cost to you.”

Sounds convenient, right?

But here’s the truth behind the offer.

The Hidden Agenda of “Preferred Vendors”

Preferred vendors are not just random contractors.

They are usually part of the insurance company’s internal supply chain.

This means:

 

• • They’re pre-approved by the insurer.

• • They follow the insurer’s process.

• • They help the insurer control claim costs.

Even though they may look independent, their main loyalty is to the insurance company—not you.

The Quiet Shift of Power

Here’s what often happens after you say “yes” to a preferred vendor:

 

1. 1. The vendor visits your property.

1. 1. They assess the damage.

1. 1. They send the report directly to your insurer, not to you.

1. 1. You’re asked to sign a vague “authorization” form.

Work begins—before you’ve seen any documents.

Now you’re stuck.

You may be liable for costs tied to a job:

 

• • You didn’t initiate.

• • You didn’t approve.

• • Based on a report you’ve never read.

• • Done by a contractor you didn’t choose.

This puts the insurance company in control of your claim—not you.

Your Legal Rights: Control Your Claim

Under Ontario’s Insurance Act, the duty to prove loss belongs to you—the policyholder.

Not the insurer.
Not their contractor.
You.

That means:

 

• • You must document the loss.

• • You must show what needs to be repaired or replaced.

• • You must support it with proper estimates.

Letting the insurer’s vendor do all of this for you undermines your position.

A Smarter Way to Handle Property Damage

Here’s how to protect yourself and keep control of your claim:

 Hire your own contractor or expert—someone who works for you, not your insurer.
– Have them create a scope of work and cost estimate.
– Submit this with your Proof of Loss.
– Ask your insurer to respond point by point to your documentation.
– Keep all communication in writing.

Your insurer still has the right to inspect your property.

But it’s your evidence that leads the process—not theirs.

What High-Value Policyholders Must Know

If your loss involves a commercial building, luxury home, or high-value contents, the stakes are enormous.

Accepting a preferred vendor without clear scope, control, or visibility can lead to:

 

• • Incomplete repairs.

• • Low-value assessments.

• • Disagreements that delay your payout.

• • Legal liability for work you never approved.

And in most cases, you’ll only realize it after the work has started or the claim is denied.

Final Thought: You Have the Right to Choose

Preferred vendors are not necessarily dishonest.

But they’re not your advocate.

They serve the insurance company’s interests—not yours.

Under the law, you’re responsible for proving your loss.

To do that, you need:

 

• • Independent assessments.

• • Clear documentation.

• • Control over the process.

At Anderson Bettencourt, we help clients take back control of their claims from the moment a loss occurs.

We work with licensed, independent experts—engineers, estimators, and adjusters—who serve you, not the insurer.

We make sure you don’t sign away your rights.

And we protect you from costly mistakes caused by vague forms and third-party tactics.

If your insurer offers a vendor, ask yourself one question:

“Whose side are they really on?”

The safest move is to choose your own.

Anderson Bettencourt can help you do just that.