ASSIGNMENT OF BENEFITS
Have you heard of assignment of benefits or AOB for short? More importantly do you understand the impact of signing an assignment of benefits over to a third-party contractor? Once signed, you’re essentially transferring your insurance claims rights and/or benefits to a third-party. If misused, then it could leave you, the homeowner, with harmful consequences.
In recent years, the topic of AOB has gained attention within the media and Florida Legislature. A signed AOB gives the third-party the authority to file a claim, make repair decisions and collect insurance payments without your involvement. Although this can be sold to consumers as a “hassle free” or “concierge” service that expedites your repairs and mitigates your headaches, if misused it can be quite the opposite.
Key Indicators that You May Be Signing an AOB:
· You’re required to sign over benefits in order to start the repairs
· The wording is similar to that of a power of attorney
· It prevents that the insurance company from communicating directly with you
If you experience a claim, then your first step should be to mitigate the damage and then contact your insurance company to file a claim.
For more information on AOB click here.