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Assignment of Benefits

On July 1, 2019, Florida passed the "Assignment of Benefits Reform Bill." Here's everything you need to know about what it means for public adjusters, attorney, and homeowners. In short, it prevents contractors from using language in their contracts that assign insurance benefits from homeowners to the contractor directly. Ultimately, the AOB Reform Bill is great news for Five Star customers because it protects the people we serve—you!

Dock Damage from hurricane

The Basics

Some predatory contractors tell homeowners that assigning benefits to them will expedite the process of repairs and prevent the homeowner from owing money out of pocket. They will take unnecessary lawsuits to the insurance companies and take the settlement money from themselves, often without even telling the homeowner about the lawsuit. Meanwhile, the insurance company will inflate the homeowner's costs in the form of higher premiums and deductibles. A lot of the time, homeowners don't realize what's happening because the contractors are careful to use specific language in their contracts that assign them benefits from the insurance company. That's where the Assignment of Benefits Reform Bill comes in.

As of July 1, 2019, contractors are no longer allowed to use language in their contracts that will allow them to sue insurance companies without the homeowner's knowledge, or collect benefits from the insurance company. In other words, it protects homeowners from predatory contracting companies and stipulates that public adjusters (like Five Star) and attorneys are the only parties allowed to negotiate with the insurance company. This bill is an important step in putting an end to the rising costs of property insurance that come as a result of the fraudulent lawsuits and bad practices by predatory contractors. It means more protection for you when you need it most.

Where Five Star Comes In

Our goal at Five Star Claims Adjusting is to keep you informed at every step of the process in filing an insurance claim, so that we can get you the settlement you deserve and get the repairs your property needs as quickly as possible. Our Licensed Public Adjusters have all been through a rigorous licensing process to ensure that they’re well educated about the laws governing property insurance and claims submission. We know how to help you get the best result with your insurance company. We're the only licensed professionals legally allowed to represent you with your insurance company.

The AOB Reform Bill makes it harder for predatory contract companies to take advantage of you, and makes it easier for licensed public adjusters like Five Star to provide you with the very best service available. For more information about the AOB Reform Bill, read our blog post.