Can I Hire My Own Contractor After an Insurance Claim?

Can I Hire My Own Contractor After an Insurance Claim?

Yes. In Florida, you have the right to choose your own licensed contractor to repair your property after an insurance claim — your insurer cannot force you to use a company from its "preferred vendor" or managed-repair network unless your policy specifically contains a managed-repair endorsement. You hire and pay the contractor; the insurer owes you the cost of repairs under your policy. Always confirm coverage and the scope of loss in writing before work begins.

You Choose the Contractor — Not the Insurance Company

A common misconception is that whoever the insurance adjuster recommends is the contractor you must use. That is not true for most Florida homeowners' policies. The insurance company's job is to pay the covered cost to repair or replace your damaged property; it is not to select your roofer, water-mitigation crew, or general contractor. You are the property owner and the party to the contract, so you decide who does the work.

There are a few important nuances:

• Preferred vendor programs are optional. Insurers maintain networks (sometimes called "managed repair" or "preferred contractor" programs) and will often steer you toward them. Participating can be convenient and may include a workmanship guarantee, but participation is your choice unless your policy requires it.
• Managed-repair endorsements are the exception. Some Florida policies — especially lower-premium or post-claim policies — contain a managed-repair provision that gives the insurer the right to control repairs and select the contractor for certain losses (frequently water losses). Read your declarations page and policy endorsements, or ask your agent, before you assume you have free choice.
• Emergency mitigation can't wait. After a loss, your policy requires you to take reasonable steps to prevent further damage (for example, tarping a roof or extracting standing water). You may hire a licensed mitigation company immediately to stop the loss from getting worse, even before the adjuster arrives. Photograph everything first and keep all receipts.

The bottom line: you can almost always hire your own contractor. Where a managed-repair clause applies, your choice may be limited — which is exactly why reading the policy matters.

Make Sure Your Contractor Is Licensed Under Florida Law

Choosing your own contractor only protects you if that contractor is properly licensed. Florida regulates construction contracting under Chapter 489, Florida Statutes, and using an unlicensed contractor can void warranties, expose you to liability, and complicate your insurance claim. Before you sign anything:

• Verify the license. Confirm the contractor holds the correct state certification or registration for the work (roofing, general, building, etc.) through the Florida Department of Business and Professional Regulation (DBPR) license search. Roofing, for example, requires a roofing or general/building contractor license — a handyman cannot legally re-roof a house.
• Confirm insurance. Ask for proof of general liability insurance and workers' compensation coverage. If an uninsured worker is injured on your property, you could be held responsible.
• Check for AOB language. Florida law sharply restricts assignment-of-benefits (AOB) agreements. Read any contract carefully before signing over your insurance rights — see the section below.
• Get the scope and price in writing. A detailed written estimate that itemizes materials, labor, and the scope of repair is your best protection and the document your insurer will compare against its own estimate.

Hiring a licensed, insured contractor is not just good practice — under Florida law it is the difference between an enforceable contract and one a court may refuse to enforce.

Understand Assignment of Benefits (AOB) Before You Sign It Away

After a loss, contractors and restoration companies sometimes ask you to sign an Assignment of Benefits (AOB) — a document that transfers your right to collect insurance proceeds directly to the contractor, so the contractor deals with the insurer and gets paid directly. Florida overhauled its AOB law in 2019, and the legislature later restricted these agreements further. An AOB is not inherently bad, but signing one means you are handing over control of your claim.

If a contractor presents an AOB, know the following before you sign:

• You don't have to sign an AOB to use your own contractor. You can hire any licensed contractor and have the insurer pay you, then you pay the contractor. The AOB is a convenience for the contractor, not a requirement for you.
• AOBs must meet strict statutory requirements. Florida law sets specific content and notice rules an AOB must satisfy to be valid, and gives you a short window to rescind it. If an AOB doesn't comply, it may be unenforceable.
• Read the fine print on fees and litigation. Some AOB contracts let the contractor sue your insurer in your name and bind you to that process. Make sure you understand what you're authorizing.

When in doubt, have an attorney review any AOB before you sign. Keeping the claim in your own name preserves your control and your options.

Steps to Hire Your Own Contractor After a Claim

Follow this sequence to protect both your property and your claim:

1. Report the loss promptly. Florida policies require prompt notice of a claim and impose post-loss duties (cooperating with the investigation, protecting the property from further damage, and submitting a sworn proof of loss when requested). Late notice can give the insurer grounds to deny or reduce your claim.
2. Document everything. Take dated photos and video of all damage before any repairs. Make an inventory of damaged items. Keep this evidence even after the contractor starts mitigation.
3. Get your own independent estimate. Hire a licensed contractor to inspect and provide a detailed written scope and estimate. This gives you a number to compare against the insurer's offer.
4. Compare the insurer's estimate to yours. Adjusters and your contractor often disagree on scope and price. If the carrier's estimate is low, you can challenge it — with your contractor's detailed scope as support.
5. Don't sign a final release prematurely. Cashing a check or signing a release marked "final" or "full and final settlement" can bar you from recovering more if hidden damage surfaces. Read every document before signing.
6. Track payments and depreciation. On a replacement-cost policy, insurers commonly pay the actual cash value first and hold back recoverable depreciation until repairs are complete and documented. Keep invoices so you can recover the holdback.
7. Get help if the claim is underpaid or denied. If the carrier denies coverage, lowballs the scope, or drags out payment, a property-damage attorney can review your policy and pursue what you're owed.

What If the Insurer Won't Pay What the Repairs Actually Cost?

Hiring your own contractor doesn't help if the insurance company refuses to fund the real cost of repairs. This is one of the most common disputes Florida homeowners face. Your options include:

• Re-inspection or supplemental claim. If your contractor finds damage the adjuster missed (very common with roof, water, and hurricane losses), you can submit a supplemental claim with the documentation.
• Appraisal. Many Florida policies contain an appraisal clause — a contractual process where each side picks an independent appraiser and a neutral umpire resolves disagreements over the amount of loss. It does not decide coverage, but it can break a deadlock on price.
• Pre-suit notice and litigation. Florida law generally requires a homeowner to serve a pre-suit notice of intent to litigate on the insurer before filing suit on a property-insurance claim, giving the carrier a chance to respond or pay. An attorney handles this process and the deadlines that come with it.

Keep in mind Florida has a statute of limitations on insurance claims, and policies also contain their own shorter deadlines (for example, time limits for reporting hurricane and supplemental claims). Acting promptly protects your rights.

Frequently Asked Questions

Q: Can my insurance company force me to use their contractor? A: Generally no. For most Florida homeowners' policies you may choose your own licensed contractor, and the insurer pays the cost of covered repairs. The exception is a policy with a managed-repair endorsement, which can give the carrier the right to control repairs for certain losses. Check your policy or ask your agent.

Q: Do I have to use the insurance company's "preferred" contractor? A: No. Preferred-vendor and managed-repair networks are offered for convenience and may include a guarantee, but participation is voluntary unless your policy specifically requires managed repair. You are free to hire an outside licensed contractor.

Q: Should I sign an Assignment of Benefits (AOB) with my contractor? A: Only if you understand and accept that you're transferring control of your insurance claim to the contractor. You do not need an AOB to use your own contractor — the insurer can pay you directly. Florida law imposes strict requirements on AOBs, and an attorney should review one before you sign.

Q: What happens if the insurance estimate is lower than my contractor's bid? A: Disagreements over scope and price are common. Submit your contractor's detailed written estimate, request a re-inspection, file a supplemental claim for any missed damage, and consider invoking the policy's appraisal clause. If the carrier still underpays, a property-damage attorney can pursue the difference.

Q: How do I verify a contractor is licensed in Florida? A: Search the contractor's name or license number on the Florida DBPR license database, confirm the license type matches the work (e.g., roofing), and request proof of general liability and workers' compensation insurance. Using an unlicensed contractor can void warranties and complicate your claim.

Q: Can I start emergency repairs before the adjuster inspects? A: Yes — your policy requires you to prevent further damage, so you may hire a licensed company to tarp, board up, or extract water right away. Photograph and document all damage first, keep every receipt, and don't make permanent repairs until the loss is documented.

Talk to a Florida Attorney

If your insurer is steering you to its own contractor, underpaying your repairs, or denying a valid property-damage claim, you don't have to accept it. Louis Law Group helps Florida homeowners hold insurance companies to their policies and recover the full cost of repairs.

See if you qualify or call (833) 657-4812 to speak with our team about your claim.

This article is general information about Florida law, not legal advice. For advice about your specific situation, consult a licensed Florida attorney.