Risk Tip: What is AOB? - Laureate Insurance Partners Risk Tip: What is AOB? - Laureate Insurance Partners


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. 

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