What is an Assignment of Benefits?

When asked to sign an Assignment of Benefits, contact your insurance company or agent FIRST. It is extremely important to understand the rights you are about to give up.

Protect yourself from Assignment of Benefits (AOB) Fraud.

Consider this situation…You have an aging roof or a roof that has been damaged by wind or hail. You, of course, want a new roof, but do not have the funds currently. You are approached by a roofing company who not only offers you a brand new roof, but a free roof! Even though it seems too good to be true, you can’t pass up the offer. They explain that you do not even have to get involved with filing or handling the insurance claim. But, in order for them to handle everything, you must first sign an AOB agreement so they can be paid for their work.

What is an Assignment of Benefits (AOB) agreement?

An assignment of benefits is an agreement that transfers all insurance policy benefits and rights from you, the policyholder to a third party such a contractor or repair vendor after damage has occurred to your home. It’s a valid agreement intended to help expedite the claims process and make things easier for the insured by letting the repair vendor work directly with the insurance company. But recently, as we have reported several times, it is being grossly misused for another purpose: for repair vendors to seize control of the claims process with the intention of overcharging and inflating repair costs.

Ongoing Scams

We have written a lot about the continued Florida roofing scams that are plaguing Florida homeowners. Time and time again, local news sources have reported about these terrible criminals. We care about our local communities and want to protect our neighbors, friends and clients. A growing number of individuals are trying to profit from the insurance claims process by convincing unsuspecting homeowners that they need a new roof. Unfortunately, Florida roofing scams STILL continue. Fortunately, some of our great insurance carrier partners are taking steps to ensure you are protected.

Do Not Sign an Assignment of Benefits!

DO NOT SIGN AN ASSIGNMENT OF BENEFITS! You will lose your rights to your claim.

We have had 2 clients sign them in the past few weeks even though we have talked about this several times. Please pay attention to this message and our content this month. One of the clients signed the A.O.B. and the contractor took their money and left without doing any work.

This is a very serious issue that is plaguing the State Market and a crisis is looming.

Updating legislation

Florida Statute §627.7152 – AOB Guide & Checklist

Below is a portion of the condensed checklist, from the good folks at Kubicki Draper, of the 16-page bill for reference when evaluating AOBs executed on July 1, 2019 and onwards.

An AOB contract must:
□ Contain signature of both parties
□ Offer insured rescission option 14 days after execution, 30 days after work scheduled to start, or 30 days after execution if no commencement date listed
□ State that the AOB is to be provided to the insurer within 3 business days of execution or starting work, whichever is earlier
□ Include an itemized estimate and assign only work to be performed (all inclusive assignments invalid)
□ Notify the insured they are giving up their rights in ALL CAPS
□ Notify the insured that they will be held harmless if the policy prohibits an AOB An AOB contract may not:
□ Penalize the insured for rescinding the AOB
□ Require a check, mortgage, or administrative fee for processing
□ Conflict with the insurance policy in any manner (I.e. cannot make checks out only to AOB company when policy requires checks to include named insured and mortgage company).