What Is An Assignment of Benefits Contract?
By Jabari Bennett, Esq.
If you’re a Florida homeowner, you’ve probably heard some news about (and maybe even noticed an increase in the discussion surrounding) Assignment of Benefits (AOB) contracts and how they impact Florida consumers. The goal of this article is to give you a basic idea of what an AOB contract is and how you can use it to your benefit.
Let’s chop it up.
1. An assignment of insurance benefits is a legal contract that allows contractors and repair companies to pursue compensation from the insurance company under your insurance policy in exchange for completing the repair work that needs to be done at your property.
2. Typically, this process allows the property owner to enjoy the benefits of prompt repair and it spares the property owner from having to deal with insurance adjusters and attorneys because the property owner is removed from the process.
It may be easier to think of it this way.
Any time you go to a new doctor’s office, the staff will provide you with an assignment of benefits contract for you to sign. This document allows for the doctor’s office to directly bill your health insurance company. This means, your health insurance company will pay up front for the medical expense of visiting this doctor rather than paying you to pay your doctor.
One of the benefits of this process is that it takes you out of the middle of your doctor’s office and your health insurance company working out the medical bill. This assignment of benefits contract with your doctor is exactly the same as the assignment of benefits contract you may sign with a contractor when you need your roof repaired.
Here’s what you need to keep in mind.
While this process is fairly straightforward, it is important to keep these following items in mind when it comes to signing an AOB for property restoration work:
1. An assignment is a legally binding agreement that cannot be rescinded or reversed without the written consent and agreement of the company who you assigned the rights to.
2. You should still take steps to mitigate or prevent further damage from occurring at your property to preserve your rights under the insurance policy.
3. You do not need to sign an assignment agreement to begin the insurance claims process; in fact, if you want to pursue a claim against your insurance for benefits, that is your right under the policy.
4. Read the assignment carefully; it is highly recommended that you obtain the services of an attorney to review the contract if you are able.
5. Verify that the contractor or repair company that you are utilizing and assigning your benefits to are properly licensed and bonded in the State of Florida.
We’re here to help.
Suffering any sort of property damage from minor to catastrophic can be stressful and frustrating. Sometimes utilizing an assignment of benefits to secure repairs can take some of the hassle out of the process. If you have any questions about pursuing a claim against your insurance company for benefits or if you have any questions about an assignment, we here at Cohen Law Group are available to help. Please give us a call at 407-478-4878 for a free and confidential consultation.
Jabari Bennett, Esq.
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