VAT question's on goods bought by insurance

As the building firm are huge they will no doubt NOT be paying VAT on the goods.

Do you mean because they'll be claiming it as fixtures and fittings for a new home?

As the building firm are huge they will no doubt NOT be paying VAT

All companies pay VAT.

You as the end user are the end of the chain. They will not make an extra £500 off you. They collect it off you and pass it on to the government. They claim VAT back on purchase they make.

Do you have a rant at retail stores about the VAT they are charging you?

What you speculate that they may or may not be paying for their supplies isn't your concern. Shop them to HMRC if you think they're tax dodging, though you'll need more concrete evidence that your lack of doubt.

They've given you a price for the completed job, it's either acceptable to you or it isn't.

LVs chosen building contractor

You got more than one quote, yes? As far as I'm aware your insurance company can recommend a contractor but they can't mandate one. It's your house.

Yes, you are way off the mark. They will be paying VAT on the goods they are buying and then selling on to you, however as a VAT registered business they can claim that back against the VAT collected from the customer, you.
This ensures you as the customer don't pay VAT on the goods twice.
The price you pay is; the cost of the goods to them (Ex VAT), plus their markup, plus VAT.

All companies pay VAT.

They will not make an extra £500 off you.

And even assuming they did, so what?

They're probably not paying what they're billing the OP for materials, that lack of transparency is a bigger con to my mind than any whataboutery around VAT.

Deleted!

Poor form - can't we sit here and pick holes in your post?