08/05/2026
In a industry Facebook group a questions was asked about RIGHT TO REPAIR, what states and what carriers are people running into it. Hunter Klein shared some great insight we thought we would go ahead and share here as well:
Here is how I am advising people handle this in Texas:
It is important to note two initial things, FIRST, the actual language of the policy's "Our Option" clause, and SECOND, the significant difference between Texas law and policies, and Florida law and policies, where a lot of the theories and arguments are coming from. In every single Texas policy I have seen, the "Our Option" (right to repair) clause says something along these lines "We will, at our option, either" and then it's "pay the cost of repair, take the property at an agreed value, or make repairs with materials of like kind and quality."
Stop there - according to this policy, who is making the repairs? WE are. And in these policies, "We" is a defined term (check the very first paragraph of the policy), which means "the insurance company." Not some preferred vendor, not some third party. So at an initial level, an insurance company sending a non-insurance company employee third party to make repairs breaches that language of the policy. Travelers can't send someone else, because the policy requires that Travelers makes the repairs. Now, there is an argument that Travelers can send agents to the property, the classic example being the independent adjuster. And yes, they can, however in Texas the insurance company's duties (good faith, fair dealing, etc.) are NON-DELEGABLE. That means no matter who they send out, the insurer is responsible (and liable) for their actions. The same non-delegable duties would apply here.
Next, compare this framework as it currently exists in Texas to what exists in Florida. One of the biggest differences is that in Florida, most policies have a "Preferred Vendor Endorsement" which specifically gives the carrier the right to require you use the insurance company's chosen contractor. HOWEVER, no such language (that I have seen) exists yet in Texas. So while Florida insurers whose policies have these endorsements have every right to require an insured to use their preferred vendor, Texas insurers do not have that right. It is the insurance company ITSELF that is on the hook for the repairs, along with all the duties I discuss above which are still non-delegable.
So what I have told people to do is to push back on that issue, the third-party contractor. The insurance company has the right to make repairs, no question about that. So you confirm that it is in fact Travelers who is going to perform the repairs, that they are the responsibility of Travelers, any issues, concerns, whatever will be addressed by Travelers, because, per the policy, it is ONLY TRAVELERS'S (or pick your carrier) option. Anecdotally, for those who have pushed back with these arguments, I am told the carrier is backing down.
Lastly, if you're working a claim where the carrier is pushing this, please let me or one of the many esteemed first-party lawyers on this forum know. We are actively coordinating our strategy and response to ensure that the case law that undoubtedly emerges from this new battleground will be right. [email protected].
