Hiring a Contractor After a Water, Fire, or Storm Loss – 10 Tips for Navigating Insurance Claims

When a home is damaged by a fire, water loss, or major storm, homeowners have a lot to figure out at once. Insurance claims can introduce an entirely new set of questions: Who should you hire? What does your insurance company actually require? What should you sign—and what should you avoid?

We wanted to put together a straightforward resource for Washington homeowners navigating that process. While not every insurance-loss project is a fit for our team, we’ve worked with homeowners through complicated repairs and know that having the right information early can make the process easier to navigate. The information below is intended to help you understand your options before you sign anything or begin repairs.

Ten Things Washington Homeowners Should Know Before Signing Anything

A pipe bursts. A neighbor’s unit floods yours. A grease fire scorches the kitchen. In the middle of dealing with the damage itself, most homeowners are also getting their first real education in how a property insurance claim actually works—often from an adjuster, a “preferred vendor,” or a contractor who’s eager to get started. Some of what you’ll hear is solid. Some of it is sales pitch dressed up as advice. Here’s what’s actually true under Washington law, so you can tell the difference.

1. You choose the contractor. Full stop.

Your insurance company may hand you a list of “preferred” or “network” contractors. That’s a convenience, not a requirement. The Washington Office of the Insurance Commissioner (OIC) is explicit on this: you have the right to select your own contractor, and your insurer isn’t allowed to condition your payout on using one of theirs.

Contractors on an insurer’s preferred list may already be familiar with that insurer’s processes and estimating practices. That can be convenient, but it doesn’t change your right to choose who performs the work.

2. The contract is between you and the contractor—not the insurance company

This is easy to lose track of in the chaos of a claim, but it matters: your insurer is not a party to your construction contract, and it never becomes one. You hire the contractor, you sign the contract, and you are the one who owes the contractor payment. Your insurance company’s job is to reimburse you, the policyholder, for covered damage—not to manage your contractor relationship.

Practically, this means a good contractor will want a signed agreement with you regardless of what your insurer ultimately pays, and will expect you to be the one paying the bill—with your insurance proceeds being how you fund that payment, not a substitute for it.

3. Your insurer owes you good faith—and there’s a real remedy if they don’t deliver it

Washington law (RCW 48.01.030) requires everyone involved in handling your claim to act honestly and in good faith. State regulation (WAC 284-30-330) spells out specific things an insurer is not allowed to do—misrepresenting policy terms, failing to act promptly on a claim, or failing to make a good-faith effort to settle, among others.

If your insurer unreasonably denies or delays a legitimate claim, Washington’s Insurance Fair Conduct Act (RCW 48.30.015) gives you the right to sue for actual damages plus, if you win, up to triple damages and attorney’s fees. There’s a procedural step first: you (or your attorney) generally need to give the insurer and the OIC 20 days’ written notice before filing.

This is a real consumer protection—but it’s also a legal process. If you think you’re in this situation, that’s the point to loop in an attorney rather than go it alone.

4. Never let a contractor offer to “eat your deductible”

You may hear a pitch along the lines of “we’ll just absorb your deductible so this doesn’t cost you anything.” In Washington, a contractor who does this as a regular practice isn’t offering you a deal—they’re committing a crime. RCW 48.30A.015 makes it “trafficking in insurance claims” for a service provider to routinely waive, rebate, or pay a claimant’s deductible: a gross misdemeanor on a first offense, and a Class C felony after that.

Regardless of the legal issue, homeowners should understand how a contractor arrived at the proposed price and what they will actually be responsible for paying. A legitimate contractor bids the actual scope of work and expects you to pay your deductible like any other homeowner.

5. Public adjusters and independent adjusters: know who’s licensed to do what

If a claim gets complicated—a coverage dispute, a large loss, disagreement over scope or value—you can hire a public adjuster to negotiate the claim on your behalf. In Washington, that person must hold a public adjuster license from the OIC (RCW 48.17). Ask to see it before you sign anything, and expect a fee, typically a percentage of the settlement—there’s no state-mandated cap, so compare terms if you’re shopping around.

This is also why a well-run contractor generally won’t try to negotiate your claim’s value directly with your insurer: doing so without an adjuster license risks crossing into territory the law reserves for licensed adjusters. A contractor’s job is to scope, price, and build the repair—not to argue your claim’s dollar value with the carrier.

6. Be cautious with an “assignment of benefits”

You may also be asked to sign an “assignment of benefits” agreement, sometimes called an AOB. This can give a contractor or other service provider the right to deal directly with your insurance company and receive payments related to your claim.

That may sound convenient when you’re already overwhelmed, but it can also give up some of your control over the claim. Before signing an assignment of benefits, understand exactly what rights you’re transferring and how it could affect your ability to communicate and negotiate with your insurer.

The Washington Office of the Insurance Commissioner recommends that homeowners understand the implications of an assignment of benefits before signing one. If you’re unsure what an agreement means for your claim, ask your insurer or an attorney before signing.

7. Multiple estimates: useful, not legally required

Washington homeowners are not generally required to collect multiple contractor bids simply because they are filing an insurance claim. Your insurer may request an estimate or other documentation to evaluate the cost of covered repairs, but you have the right to choose your contractor.

If your insurer’s number and your contractor’s number are far apart, that’s a scope-and-pricing conversation—not a sign you did something wrong by not shopping around.

8. If someone else caused the damage

Water damage from the unit above, a neighbor’s tree through your fence, a car through your garage—when another party is responsible, you generally have two paths: file with your own insurer and let them subrogate (recover their payout from the responsible party’s carrier after paying you), or, in straightforward cases, submit the claim directly to the responsible party’s insurance, similar to how an auto claim works after someone else hits your car.

Either path can be legitimate; which one makes sense depends on how clear liability is and how quickly you need repairs to start.

9. Don’t assume upgrades or code-required work are automatically covered

Insurance generally covers the cost of repairing covered damage according to the terms of your policy. If repairs include upgrades beyond restoring the property to its previous condition, or if current building codes require additional work, don’t assume those costs are automatically covered.

Check your policy or ask your insurer whether you have law and ordinance coverage and what it applies to before approving work beyond the basic repair.

10. Keep everything in writing

Photograph the damage before anything is removed or repaired. Get scope, pricing, and change orders in writing. If you’re ever asked to produce records for a claim dispute, print and review documents before you hand them over rather than forwarding a raw digital file dump—it’s easy for a stray file or an out-of-context number to get misread by someone looking for a problem.

This isn’t about hiding anything; it’s about making sure what you hand over says what you mean it to say.

Quick checklist before you sign a contractor for insurance work

• Confirm the contractor is registered with WA L&I (RCW 18.27) and carries current liability insurance.
• Get a written contract between you and the contractor—payment terms should not depend on your insurer’s decisions.
• Ask directly: will they ever discount, waive, or absorb your deductible? If yes, that’s a legal red flag.
• If a public or independent adjuster is involved, verify their WA license before signing an agreement.
• Understand any assignment-of-benefits agreement before signing it.
• Photograph everything before repairs begin.
• Keep copies of your estimates, contracts, change orders, invoices, and insurance correspondence.
• You are never required to use your insurer’s preferred contractor list.

If you’re dealing with a significant loss and are unsure what to do next, start by getting organized, understanding your coverage, and choosing the professionals you trust. And if you need help determining what repairs your home may require, a qualified contractor can help you understand the construction side of the process.

This article is general information about Washington insurance and contractor law, not legal advice for your specific claim. For questions about your policy or a denied/delayed claim, contact the WA Office of the Insurance Commissioner at 800-562-6900, or consult an attorney.