Homeowner's Academy

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How Does Assignment of Benefits Impact Florida Homeowners?

by BROOKE GOLD HASSON | Mar 06, 2017

Assignment of Benefits FloridaAs Florida’s 2017 legislative session kicks off, Assignment of Benefits reform will be one of the leading insurance issues addressed by state lawmakers.

Bills addressing Assignment of Benefits reform have been filed the last four legislative sessions, but all have failed as a result of excessive lobbying from trial attorneys and contractors who profit from this widespread scheme.

How Assignment of Benefits Scams Work

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... Read More

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... Read More

ConsumerProtectionHandbook3Protecting Your Pocketbook

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 877.333.1230, 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 affiliate, the Rapid Response Team, you can avoid the trap of assigning your benefits to shady Florida contractors and losing control of your own home repairs.