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.
