Q: As part of the insurance claim on our home, we’re being asked to sign an “Assignment of Benefits” so the contractor can work directly with the insurer. Is this a good idea?
A: An AOB gives the third-party authority to file a claim, make repair decisions and collect insurance payments without your involvement. It is a legal and legitimate tool. AOB’s also enable fraud and many consumer complaints. You are not obligated to sign an AOB and the harder they push you to do so, the less I would trust this contractor.
Signing an AOB allows your contractor to make decisions on how the work will be done and who will do it. If work drags or quality is poor, you cannot fire your contractor as it is no longer ‘your’ claim. Many unscrupulous practices follow the signing of an AOB, and I would recommend you NOT do this.
To see a video from the Florida Department of Consumer Services to understand more clearly what AOB’s are for, how they are abused and what risks this causes for you, please follow the link below:
https://www.myfloridacfo.com/Division/Consumers/AssignmentofBenefits.htm
