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

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. 

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