The huge success rate for insurance restoration contractors is due to a remarkable absence of competitive bidding. In fact, insurance companies are far less interested in getting the lowest possible price for a job than they are concerned about the quality of the contractor. Insurance adjusters seek to acquire, from a reputable contractor, a cost analysis that has rates that fall within a range that has been pre-approved. On most insurance restoration jobs there is a strong need for expediency. The sooner a job gets started, the better it looks for the insurance company.
People buy insurance based on perception.
When there is a loss in any community, there is immediate attention drawn to the company who provides insurance against that loss. If an insurance company wishes to continue selling and renewing policies in the area, it must demonstrate that it can respond quickly and efficiently. To do otherwise would invite bad press which would damage it's business in the community. For this reason, most insurance restoration jobs are awarded, within days to a local, reputable, pre-qualified contractor. Most jobs are approved on a single 'reasonable' bid, submitted by a pre-approved 'insider' contractor.