Vetting Questionaire: Recovery Alignment

Vetting and Vital Questions to Verify

1. Ethical Engagement and Red Flag Assessment

Your safety and privacy are paramount. These questions help identify and avoid unethical behavior.

Critical Questions to Ask:

• How did you become aware of this specific incident and my property address? Confirm the representative is not chasing your loss for a commission check.

• Do you have a permanent, local office and staff in Local Area? Confirm with google maps or calling the site.

• If an on site representative claims to be sent from the insurance carrier: Can you provide a formal work order or assignment confirmation from my insurance adjuster or carrier?

IFF Guidance on Red Flags:

• The Contact Timing: A RED FLAG is raised if they contacted you while the incident was ongoing or prior to you contacting your carrier. Professional, ethically sourced leads do not happen this way. A contractor may pay for "leads" or "losses" through a third party software service. Unsolicited, uninvited salesmen are not necessary for your recovery. 

• The Right to Choose: If a contractor states they were "sent by the carrier," you must ALWAYS CONFIRM this with your adjuster. You have the right to choose your contractor. IFF strongly advises against engaging with or rewarding poor behavior (ambulance chasing).

• Location: If the adjuster brought in a company from way out of county/area, this may signal a red flag regarding adjuster bias or potentially inflated travel costs. A local presence suggests better accountability.

2. Capacity, Licensing, and Credentials (Crucial Compliance)

State law provides specific protections regarding licensing and bonding that you must verify, especially for substantial work.

Capacity and Expertise:

• What is your capacity to handle all aspects of the project, from emergency mitigation through final reconstruction? A full-service provider can prevent costly delays caused by handoffs between different companies.

• How many losses of this size or severity (e.g., total displacement, severe smoke) have you managed in the last year? Demand recent, relevant experience matching the complexity of your loss.

• Do you have IICRC certifications for each area of service required? Look for essential certifications (e.g., FSRT for Fire & Smoke, WDRT for water damage) that confirm specialized expertise beyond general contracting.

• Do you have IICRC master certifications? An Indication a higher level of commitment and industry recognition (optional but valuable). Look for an certifications such as CR, Master Fire Restorer, or similar advanced credentials.

Licensing and Contractual Requirements:

• Are you licensed, insured, and bonded? This is non-negotiable.

  • Required for Work Over $1,000: The contractor must provide proof of an Active State Contractor's License (must verify online), full General Liability Insurance, Worker’s Compensation, and Bonding to ensure performance and coverage.

  • Required for Work Over $500: The contractor must confirm that all work exceeding $500 will be covered by a detailed written contract signed by all parties.

3. Pricing, Estimation, and Policy Compliance

Your contractor's technical expertise in insurance pricing directly determines the success of your claim.

Compliance Questions:

• Are you proficient and compliant with Xactimate or my carrier's internal TPA compliance tool for pricing and estimation? Compliance with Xactimate (the industry's required pricing software) is REQUIRED. Contractors unfamiliar with this system will struggle to get their estimates approved, often resulting in underpaid claims for the policyholder.

• Will your contract allow my adjuster and me to review and approve the final Scope of Work before non-emergency repairs commence? This is a critical protection against unauthorized charges outside the policy coverage.

• How do you handle the daily price fluctuations in Xactimate, and will I receive a copy of your final Xactimate scope? Ensure they provide the final itemized Xactimate estimate for transparency.

Emergency Service Cost Rule:

• If performing emergency services (board-up, water evacuation), what is the rough cost or general range for this work?

• IFF Guidance on Payment: Basic stabilization, shoring or board up services should not exceed $3,000 without prior adjuster approval. Any quote beyond this should be given to the adjuster for approval BEFORE any contracts are signed or payments distributed. Furthermore, no work should be paid for prior to the service completion.

4. Quality Assurance, Warranty, and Documentation

A successful recovery requires a transparent paper trail and guarantees that protect you long after the adjuster is gone.

Documentation and Process Questions:

• How will you monitor and document the structural drying and deodorization process to ensure no mold or odors remain? Demand final dry reports, moisture meter readings, and a commitment to providing a final Certificate of Completion.

• What is your process for documenting non-restorable contents for the personal property claim? Ensure they utilize industry-standard practices, including detailed inventory, photo/video documentation, and a clear chain-of-custody process.

• What kind of daily/weekly progress reports and documentation will I receive during the mitigation and reconstruction phases? Consistent communication is key.

5. Policyholder Control: Your Right to Choose 

You must understand a core principle of disaster recovery: It is your recovery, at all times.

While the insurance carrier may have TPA (Third-Party Administrator) and compliance programs that allow them to house "program" or "preferred" vendors/contractors, the adjuster has no authority to mandate which vendor you utilize for your recovery.

The adjuster may offer suggestions based on available program vendors, but they should never force a specific vendor upon you or threaten claim denial if you choose otherwise.

You are in control and have a responsibility to complete your due diligence on every vendor, regardless of how they were suggested—whether by the insurance carrier, an adjuster, or through your own research.

Contracting Options:

You can contract with any contractor/vendor in two distinct ways:

1. Program or Preferred Assignment: The vendor is assigned to your claim through the insurance adjuster or a TPA program.

2. Direct Contract: You choose a vendor that aligns with your needs, budget, and requirements, irrespective of their "preferred vendor" status.

In either scenario, you must complete a full, comprehensive check and questionnaire to vet the vendor.

2. Red Flags: The Contractor and Public Adjuster Relationship 

Be highly cautious of any relationship that combines the advocacy role of a Public Adjuster (PA) with the execution role of a Contractor/Vendor. This presents an unhealthy conflict of interest that is against industry best practices.

• Contractor bringing in a PA: Any vendor that introduces a Public Adjuster (or vice versa) is a RED FLAG. This action may be an attempt to lock themselves into a contract without giving you the option to remove them at a later date. No Public Adjuster should have a vested interest in who performs the necessary work.

• PA bringing in a Contractor: Similarly, a PA should not introduce you to a specific vendor they "work with." The public adjuster's sole responsibility is to advocate for the settlement amount, not to steer construction work.

You should always keep your advocacy (PA, if you hire one) and execution (Contractor) decisions entirely separate to ensure both parties remain accountable to you alone.

Final Protection Questions:

• What is your workmanship warranty on the completed repairs, and what are the written terms? The warranty must be in writing (minimum 1-2 years on labor) and attached to the contract.

• When will I receive the final release of lien waiver from all subcontractors and suppliers on the project? This is essential. You must receive Lien Waivers from all parties before making the final payment to the general contractor, protecting you from future liens on your property.

• What is your guaranteed response time for emergency calls and how often can I expect progress updates? Demand a direct, available point of contact (Project Manager) and a routine communication schedule.

These tips are intended for educational purposes only. No legal advice should be inferred from these materials.