Preferred Contractor Endorsement in Property Insurance Policies

Certain property insurance policies have what is known as a preferred contractor endorsement. It can be written in numerous ways, but the objective is to allow the insurer to perform covered repairs through its preferred contractor. In a recent case, the property insurance policy contained this endorsement: That policy includes a preferred contractor endorsement which states that when a covered loss occurs to the insured's property “and repairs are necessary to protect property from further damage,” the insured must notify People's Trust [insurer] “before authorizing or commencing repairs so [People's Trust], at [its] option, may select Rapid Response Team, LLC, to make...