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Assignment of Benefits & how this affects me and my payment?

An Assignment of Benefits, or an AOB, is a document signed by a policyholder that allows a third party, such as a water extraction company, a roofer, or a plumber, to “stand in the shoes” of the insured and seek direct payment from the insurance company. It has become prevalent in water and roof claims across the state. This action allows third parties to go after payment directly without homeowner intervention. It may be your policy, but you may not be in control. Is this new?

No, AOBs have been a part of Florida’s marketplace for more than a 100 years. Yet, loopholes in the way it is being used in the marketplace are driving up costs for homeowners across the state due to unnecessary litigation associated with certain AOB claims. Per CFO Jeff Atwater, in 2006, “there were 405 AOB lawsuits across all 67 counties in Florida and in 2016, that number had risen to 28,200”. Homeowners could begin to see 10% rate increases per year going forward.

So what do I do? You make sure that your agent has clearly explained your policy to you and how this third party action may affect your claims, payouts or policy payments. We at Blankit Insurance Group are here to help you read, explain, and understand your policy, even if your policy wasn’t purchased with us. We are here for you, now for your policy.

For more information visit: floir.com/Sections/PandC/AssignmentofBenefits.aspx

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