Why You Should Be Cautious About Signing an Assignment of Benefits
An Assignment of Benefits (AOB) transfers some or all of a policyholder’s post-loss insurance benefits to another party, such as a contractor or repair company. This transfer may allow the company to communicate with the insurer, submit invoices, negotiate payment, or pursue a claim on the policyholder’s behalf.
Transferring control of insurance benefits can limit a homeowner’s involvement in the claim process. Before signing any document related to insurance rights, payment authority, or legal representation, ensure you understand the specific authority being transferred.
Florida Law Has Changed
Florida now prohibits policyholders from assigning post-loss benefits under residential or commercial property insurance policies issued or renewed on or after January 1, 2023. Most current policies fall under this restriction, so traditional property-insurance AOBs are generally not permitted. Older policies may still be subject to previous requirements, depending on their effective dates.
Homeowners should carefully review every document. Forms labeled as work authorizations, directions to pay, contingency agreements, or other authorizations may still include provisions related to insurance proceeds, communications, or claim control.
Questions to Ask Before Signing
If a contractor presents insurance-related paperwork, ask:
Does this transfer any of my insurance rights?
May the contractor communicate or negotiate with my insurer?
Does it authorize direct payment to another party?
Can I cancel the agreement, and are there penalties?
Am I responsible for costs not paid by insurance?
Does the document include a power of attorney or legal authorization?
Do not sign blank or incomplete forms. Keep copies of all signed documents and compare each agreement with your insurance policy. If any language is unclear, contact your insurance company or a qualified Florida attorney before proceeding.
A contractor may inspect damage, prepare a repair estimate, and perform authorized roofing work without requiring the homeowner to surrender control of the insurance claim.
Packard Roofing & Waterproofing encourages homeowners to understand every agreement related to their roofing project. Clear contracts, transparent pricing, and informed decisions protect both the customer and the contractor.
