Assignment of Benefits Drives Up Insurance Cost in Florida Panhandle

In a previous blog post, Noble Public Adjusting Group discussed Assignment of Benefits and how homeowners DO NOT have to accept this often suggested contract from your insurance company when you experience a loss in the Florida Panhandle.

AOB, (Assignment of Benefits) is an agreement that, once signed, transfers the insurance claims rights or benefits of your insurance policy to a third party. An AOB gives the third party authority to file a claim, make repair decisions and collect insurance payments without the involvement of the homeowner. For example, you have a pipe leak in your Florida Panhandle home that causes water damage. If you call a restoration company to make repairs and sign an AOB that transfers your insurance rights to the company, the company can file a claim on your behalf and be paid directly.

The video below does a great job of showing how Assignment of Benefits is driving up insurance cost in Florida. The video is courtesy of ABC Action News out of Tampa and is part of this article.

Here is an example from the article at ABC Action News of a real experience with Assignment of Benefits and how it became a nightmare for Florida homeowner and teacher Kellie Clark. "It started with a stranger at the door. She says he indicated he was with her insurer and needed to check her roof for hail damage. Clark signed an assignment of benefits or AOB. It's where homeowners turn over all rights to their claim to a contractor or lawyer in exchange for a quick repair. Done Rite roofing owner Jason Loiacana came out for a second opinion.

He confirmed the Clark's needed a new roof, an $8,000 to $9,000 dollar job. But the AOB Clark signed allowed the Simbro Group, not an actual contractor, to file an $18,000 claim with her insurance. AOB abuse occurs when contractors and attorneys inflate claims then sue the insurance companies for payment. Insurers often settle to avoid costly court fights. House Speaker Richard Corcoran says homeowners could see their bills increase 2 to 4 thousand dollars a year in the next 5 years if the legislature fails to pass one of the measures aimed at curbing AOB abuse. In Clark's case, the Simbro group threatened to take her house after she returned the $18,000 check to the insurer."

As you can well see, you should NEVER sign an AOB, (Assignment of Benefits.) Noble fervently hopes that after reading this blog post, watching the video from ABC Action News, and reading the above example of what can happen if you sign an Assignment of Benefits, you now understand the hazards and pitfalls of insurance language and especially AOB.

The website of Florida’s Chief Financial Officer has a section called Consumer Protections and they have this great list of red flags to look for when it comes to AOB. The list is in PDF form. Here is the link to the form. Below is a list of the red flags they list when it comes to Assignment of Benefits:

• You feel pressured to sign a contract or other documents.
• You are asked to sign over your benefits in order to
  initiate the repair process.
• The language in the contract/document is similar to
  a power of attorney for the handling of the claim –
  this power gives the company the right to negotiate
  and endorse checks and/or hire an attorney or public
  adjuster on your behalf.
• The language requires that all claim proceeds be
  made payable to an entity or individual other than
  you (the policyholder) or your mortgage company.
• The language prevents your insurance company from
  communicating directly with you about your claim.
• The document looks unprofessional and contains
  grammatical errors misspelled words or blank spaces.

Noble Public Adjusting Group wants you to call us before you sign any kind of contract concerning a damage claim at your Florida Panhandle home or business property. We can also go over your insurance policy with you for free and make sure this contract is not a part of the language involved. In fact, we would rather you let us handle filing your insurance claim. There will be no AOB ever involved. We have a list of contractors across the nation who do not deal in AOB and are vetted by us for their personal integrity and the quality of their work.

We did not come across the name “Noble” by accident. Fighting for policyholders is our life mission and noble cause. Noble Public Adjusting Group’s main office is in Panama City Beach. We have several other offices in Florida, in Texas and in Georgia, but we can talk to you about your insurance policy anywhere in the US and handle your claim.

Noble Public Adjusting Group 
107 Amar Place Suite 103
Panama City Beach (West End), FL 32413
(850) 249-MY-PA

 

 

 

 

Originally Posted here: Assignment of Benefits Drives Up Insurance Cost in Florida Panhandle