An assignment of benefits (AOB) is a legal tool that allows a third party to be paid for services performed for an insured homeowner who would normally be reimbursed by the insurance company directly after making a claim. AOB is commonly used when a homeowner experiences a water loss – such as a leaky pipe, an overflow from a sink, or a damaged appliance – and contacts a contractor or water remediation company for assistance. Most AOB agreements presented to the homeowner allow the contractor to stand in the shoes of the homeowner for insurance collection purposes.
Insurance companies have been spending millions of dollars on attorneys and lobbyists in Tallahassee for the last 4 years to try to do away with the AOB. This will relieve the insurance companies of having to pay both sides lawyers when they DENY and/or only pay a small portion of the loss. This causes the homeowner and the contractor to have to pay their own lawyers in disputes, which then no one will ever win again as we all know you only get as much justice as our checkbooks will allow us. The insurance will litigate us out of existence.
As it stands now with the AOB, and we get denied or short paid, we are entitled to our lawyer fees as soon as we win $1 more than they allowed. I go to many Water Losses and I am able to obtain the AOB knowing I have a chance to get paid. Many people do not even have the deductible money let alone sign a contact stating that they are liable if the insurance doesn't pay.
There are specialty lawyers that work with homeowners and contractors with an AOB. This allows homeowners to get their homes/residences dry with NO money. This is what I believe AOB was designed for. Many vendors referred by the insurance company have contracts stating they are NOT affiliated with your insurance company who recommended them and want you to sign a contact that you fire them and only you are responsible for what your insurance company doesn't pay.
We will pay up to $1500 for your plumber service, repair, and even replacement of your broken cause of loss when your FIRST call is to us. Your maintenance man, property manager, insurance company, plumber, or your housesetter will not offer you this. And YES, with a valid insurance claim we ONLY hold your insurance company responsible for your service. After all, that's why you have insurance to begin with right?