Your insurance is not performing on your behalf and telling you false stories about your water/fire claim. If they ask you or tell you that you have to use their own vendor it's breaking the law on page 19 of the California insurance commission laws states they cannot recommend any company unless you asked them.
Once their vendor is in there they cut corners and do not do the appropriate certified work and then the adjuster tries not to pay for materials that they should be paying in full for. Also make sure before any company comes to your home you do your research make sure they are certified and California State licensed.
Look at this document from the California commission insurance laws and if you have any questions call Dry1out specialized Restoration.