Home Advisory: Assignment of Benefits
If a contractor promises to take care of ALL of the paperwork, think twice and call your
insurance company before you sign away your rights. Florida homeowners are becoming
victims of insurance fraud because of a common scheme used by a variety of dishonest
contractors that abuses the "Assignment of Benefits" (AOB) law to hijack your claim.
So, what is an Assignment of Benefits anyway?”
If your home has water damage, your first thought may be to call a contractor to dry out
your home before contacting your insurance company. This can be a costly mistake.
There have been an increasing number of homeowners who have unknowingly signed
contracts or forms that include Assignment of Benefits agreements. These forms are
sometimes provided by contractors, often for water damage restoration, and must be read
carefully. By signing documents with an Assignment of Benefits agreement, you may be
allowing the contractor to collect your claim settlement funds directly from your insurance
company. This has resulted in homeowners losing control of the claim process and it could
mean having to pay amounts beyond what is covered in their policy. The contractor could
place a lien on the home, and contractor liens in Florida can be enforced by foreclosure.
Important steps you should take
Call us at 941-203-8000 before you sign any paperwork!
Here is a link to a guide for Hiring a Contractor.
See full article: Security First Insurance