What is the Assignment of Benefits? (& How Does it Relate to Roofers)

There are many different aspects of insurance claims we get asked about, but lately, we've had a topic come up more often. “What is an Assignment of Benefits?”  

 

This document is often requested by contractors to be signed by homeowners when they need to make a claim on their insurance policy, but many homeowners don't know what they are being asked to sign. This document has become a hot topic in the roofing industry as of late, so let's take a closer look at it! We will explain what the assignment of benefits is, how it affects your claim, and how it affects roofers. 

What is the Assignment of Benefits (AOB)? 

 

The Assignment of Benefits is a contract between a policyholder and a service provider that gives the service provider authority over the claim. It allows the service provider to effect the claim as if they are the policyholder. It even gives them the right to file suit against the insurance company if they choose. In addition, it also states that the benefits of the insurance policy will be paid to the service provider instead of the policyholder. 

 

For example, let's say you have damage to your roof from a storm. You would need to file a claim with your insurance company to get the repairs covered. If you have an AOB in place, the benefits of your insurance policy would be paid to the roofing contractor instead of you. 

 

 

How Does an AOB Affect Your Claim? 

 

Not all service providers who use an AOB are bad. An AOB can speed up the claims process because the service provider will be paid directly by the insurance company, which can be beneficial if you need to have repairs done quickly. However, an AOB can also complicate the claims process because you are no longer in control of your claim and some service providers have been known to take advantage of that.  

 

In Florida, AOBs are being used by roofing contractors to get paid directly by insurance companies for repairing roof damage. A few roofing contractors may use high-pressure sales tactics to get homeowners to sign an AOB, telling the homeowner that they need to sign the AOB to get their roof repaired.  

 

In some extreme cases, contractors may not even tell the homeowner that they are signing an AOB! The homeowner may only find out after they have already signed the contract!  

 

Before you sign anything related to your claim, you should give us a call at Liberty Adjusters to understand all the implications of what you are singing. 

 

Learn More > Why You May Regret NOT Hiring a Public Adjuster 

Liberty Adjusters Has Your Back Throughout Your Claim 

 

It's important to understand what you are signing when you receive any insurance claim-related form. If you have any questions, you should contact a reputable public insurance adjuster, like us here at Liberty Adjusters. We can help you understand your rights and options so that you can make an informed decision about your claim. Call today!