Articles

Few deny that the property restoration industry has progressively become more difficult, due to a catastrophically diminished trust between insurers and service providers. Today, the intensity of this lack of trust has produced a market whereby administrators of preferred vendor programs, service provider networks and third-party administrations (TPAs) privately negotiate stipulations with insurance carriers that are blatantly substandard, along with the promise to impose rules upon service providers who participate in their programs that are patently unfair. The result, too often, is a property owner who does not receive a competently executed restoration effort

Many restoration professionals fear the restoration industry is on the cusp of an industry-wide implosion. PROBLEMS: 1. Preferred vendor programs implemented by insurance companies impose enormous demands upon service providers to deliver an increased level of service and product while accepting a dramatically reduced revenue. This places competitive pressure upon the service providers delivering high quality and service for a fair and customary price to match the prices of lesser quality and service providers. Furthermore, program participants are rarely encouraged to reveal their contractual conflict of interest to the insured upon entering a contractual