When a home is damaged, the owner calls a repair contractor – for example, a roofer or plumber. The contractor gets the homeowner to sign a broadly worded Assignment of Benefits, or AOB, form, which lets the contractor get paid directly by the insurance company. The problem is, some underhanded contractors inflate the value of their repair job. When the insurance company refuses to pay the bogus amount, the contractor teams up with a lawyer and sues the insurance company.
What Does This Mean for Homeowners?
Everyone who has a Florida homeowners insurance policy pays the price for Assignment of Benefits abuse – including you. For one thing, if you’re a victim of an Assignment of Benefits scam, a lawsuit could be going on regarding your insurance policy – and you may not know anything about it! On top of that, the insurance company has to pay to defend itself … and that drives up the cost of everyone’s insurance.
Assignment of Benefits Prevention Resources
Good news: Assignment of Benefits abuse is preventable. Review the following resources to protect yourself.
Home in Need of a Repair? Beware of Scary Contractors
While most home restoration contractors are reliable, Florida has witnessed a frightening increase in cases related to the scary concept of Assignment of Benefits abuse in recent years.
7 Ways to Avoid Getting Caught in a Home Repair Insurance Scam
Assignment of Benefits abuse is preventable. Here are some simple steps you can take to avoid getting caught in the middle of a home repair insurance scam.
The Consumer Protection Coalition has created the following guide to help educate Florida homeowners on Assignment of Benefits fraud and abuse, including:
- What is Assignment of Benefits abuse?
- What are the risks of signing an AOB?
- How can I avoid being an AOB scam victim?
Policyholders: In the Event of a Loss… Call People’s Trust First.
Your People’s Trust Insurance policy makes it easy for you to stop these cheats and do your part to keep everyone’s rates down (including your own). If disaster strikes, Call People’s Trust First at 561-609-1002, and we’ll handle everything from there. No tricks, no schemes.
You get our seamless, hassle-free recovery process – and as always, our work is backed by an industry-leading 3-year, 100% customer satisfaction guarantee. Thanks to your policy with People’s Trust, you can avoid this scam and make sure your repairs are done right. And, with our preferred contractor, you can avoid the trap of assigning your benefits to shady Florida contractors and losing control of your own home repairs.