When your home suffers damage and you file an insurance claim, your insurer may suggest one of their “preferred vendors” — contractors they regularly work with. Sometimes, policyholders even hear statements like: “You must use our preferred contractor or vendor.” This can be confusing, but here’s the truth: in Georgia, homeowners have the legal right to choose who repairs their home. Insurance companies cannot legally force you to use a contractor you did not pick.
What Georgia Law Says About Contractor Choice
While no single Georgia statute states, “homeowners must choose their own contractor,” several legal principles protect your freedom to contract:
O.C.G.A. § 13-8-2 — Freedom to Contract
Georgia law allows parties to contract freely, unless a statute or public policy prohibits it. This supports your right to select your own contractor.
Georgia Code § 33-6-34 — Consumer Insurance Protections
This statute prohibits unfair insurance practices, reinforcing your right to fair treatment during the claims process.
Georgia Case Law & Contract Principles
Courts in Georgia disfavor coercive or ambiguous contracts. When policies are unclear, courts often interpret them in favor of the insured — protecting homeowners from being forced into using insurer-preferred contractors.
Why “Preferred Vendor” Programs Can Be Problematic
Insurance companies often push their vendor network for convenience or cost savings. While that may benefit the insurer, it can create problems for homeowners:
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Reduced Control – You lose the ability to choose the contractor you trust for quality workmanship.
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Conflicts of Interest – Preferred vendors may work to satisfy insurers’ budgets rather than restoring your home properly.
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Potential Delays or Incomplete Repairs – Convenience-based contractor choices sometimes lead to poor outcomes.
Your Rights as a Georgia Homeowner
If your insurer suggests or pressures you to use a preferred vendor, remember:
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✅ You can hire your own licensed and insured contractor.
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✅ Your insurer must cover the reasonable cost to restore your home to pre-loss condition, no matter who you hire.
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✅ Always ensure your contractor follows industry standards (IICRC, ASTM, local building codes).
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✅ Document everything — estimates, communications, and inspection reports.
Relevant Georgia Statutes and Proposed Legislation
Several laws and proposed bills highlight this ongoing issue:
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HB 1310 (Proposed) – Would require insurers to disclose that policyholders are not required to use preferred vendors and would prohibit coercion in managed repair programs.
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Georgia Code § 33-24-18 – Governs the required content of insurance policies.
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Georgia Code § 33-7-6 – Defines property insurance and the regulatory framework for insurer-insured agreements.
While these statutes don’t explicitly ban preferred vendor requirements, they reinforce protections for homeowners’ rights.
How Georgia Courts and Lawmakers Support Homeowners
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Courts generally favor homeowners when policy language is unclear.
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Any requirement to use a specific vendor would need to be clearly written in the insurance policy.
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Proposed legislation (HB 1310) shows a growing recognition that stronger disclosure laws are needed to prevent coercion.
Key Takeaway: You Have the Right to Choose
In Georgia, you do not have to use your insurance company’s preferred contractor. You have the legal right to select the water damage restoration professional in Georgia who will restore your home, ensuring the quality and standards you expect. If your insurer pressures you, push back — politely but firmly — and remind them of your rights under Georgia law.
