Public Adjusters and Attorneys are the only ones legally allowed to negotiate on your behalf with your insurance company. Contractors are no longer allowed to use “Assignment of Benefits” to assist with claims for property owners.
The Florida AOB Bill Explained
The AOB Reform bill is a law that takes effect July 1, 2019. It prevents contractors from using language in their contracts that assign insurance benefits from homeowners to the contractor directly. When this happens, the contractor goes to the insurance company to collect money, sometimes suing the insurance company on behalf of the homeowner without their knowledge or consent.
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.
Instead, what ends up happening is the contractor submits inflated costs to the insurance company or creates a lawsuit against the insurance company and the insurance company passes on those costs to homeowners in the form of higher premiums and deductibles.
What does the new Assignment of Benefits Bill mean to me, the home owner?
The AOB Reform Bill offers property owners, with damage to their homes or businesses, protection against predatory contractors. Contractors can’t ask you to assign your insurance benefits to them and then approach your insurance company on your behalf to try to get payment for damage repair.
However, not all contractors request an Assignment of Benefits with ill intent. Some genuinely feel that they are serving their customers best by doing this. And many don’t realize that the law has recently changed.
It’s 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.
How Does This Affect “Ask An Adjuster” Customers?
The AOB Reform Bill is great news for Ask An Adjuster customers because it protects the people we serve—you! 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.
Ask An Adjuster’s licensed claims adjusters keep you informed at every step of the process in filing an insurance claim. Our goal is to get you the settlement you deserve so that you can get the repairs your property needs as quickly as possible.
How Does This Affect Ask An Adjuster’s Relationship With Contractors?
At Ask An Adjuster Claims, our goal is to work closely with contractors to assure the best possible outcome for the home, property, or business owner.
Frequently Asked Questions
What is the assignment of benefits form?
A: It’s a document form to transfer the rights of an insurance policy to a third parties.
What does the assignment of benefits form do?
A: This will transfer your claims rights/benefits to a third party to file a claim in the claim/policy holder’s behalf.
Should I sign an assignment of benefits agreement?
A: It’s something to transfer your power over to a third party, so it’s best if you consult one of our public adjusters and see if you need it.