Assignment of Benefits

It’s important to carefully review your entire home improvement contact when you hire someone to take care of emergency home repairs because it could include an Assignment of Benefits (AOB) agreement. Pinellas County Consumer Protection has provided the following information on AOB agreements and tips for working with contractors in these situations.

• An AOB is a contract between you and a third party – typically a contractor – authorizing them to deal directly with your insurance company, including collecting your claim payment.
• By signing an AOB, you give up your rights to handle the claim and ensure any disputes are resolved quickly and satisfactorily.
• An AOB is a legally binding contract. Once an AOB is signed, there is no right to back out or cancel the agreement.
• After an AOB is signed, the insurance company can only communicate directly with the third party regarding the claim – not you.
• You do not need to sign an AOB to get your insurance claim processed or to start the repair process, even if it is for emergency repairs.
• Florida law prohibits contractors from paying, waiving or rebating all or any part of an insurance deductible applicable to repairs to property covered by an insurance policy.
• Verify the license of any contractor you hire to repair your property. Most home Improvement work requires a contractors license. County licenses are issued by the Pinellas County Construction Licensing Board, and state licenses are issued through the Department of Business and Professional Regulation.
• You should also verify the company’s or person’s general liability and workers compensation insurance coverage with the licensing agency and Division of Workers Compensation at myfloridacfo.com/Division/WC/.
• For more tips on assignments of benefits, view the Florida Department of Financial Service’s AOB Guide.