How Assignment Of Benefits May Impact Homeowners
There have been an increasing number of homeowners who have unknowingly signed contracts or forms that include Assignment of Benefits (AOB) agreements. These forms are sometimes provided by contractors, often for water damage restoration, and must be read carefully. The end result is that the contractor is assigned your rights under the insurance policy. This can be a problem in that there are some contractors and attorneys that use this as a scam to sue insurers. This has resulted in homeowners losing control of the claim process and it could mean having to pay amounts beyond what is covered in their policy. The contractor could place a lien on the home.
How To Protect Yourself
- Call your agent or insurer first
- Do not sign anything without reviewing it with our office
- Most insurers have 24/7 claim hotlines
- Read all documents before you sign them
While there may be some good reasons to use AOB, there can be abuses, and it is always good idea to call our office first.
The assignment of benefits scourge in the homeowners’ market has been mostly concentrated in South Florida but is quickly spreading to Tampa Bay. We’re already the No. 1 hot spot for auto glass lawsuits, according to Tampa Bay Times staff writer Malena Carollo, and the numbers keep growing. Hillsborough County alone accounted for 35 percent of cases statewide in 2016. That’s not a list the region should want to be atop, and the only current remedy is for drivers to be informed and careful. If you have a cracked windshield, contact your insurance company directly to start the claim process, then follow the claim to conclusion. If you do allow a repair company to negotiate with insurance on your behalf, understand that a lawsuit could eventually be filed in your name.
Amberg Insurance Center, Inc. was established in 1974 to serve the growing insurance needs of the many businesses and individuals located in the Charlotte and surrounding counties. We take pride in the quality service provided to our customers, our community concern, and our commitment to the overall development of our employees.
Amberg Insurance has been voted First Place for Best Insurance Agency and Best Agent by the Charlotte Sun Newspaper and First Place for ‘Harbor’s Hottest’ Insurance Agency by Harbor Style Magazine.
Please Call our office for more information.