Guest Contributor Spotlight

John was a Certified Inspector with the Florida Association of Code Enforcement prior to opening All Service Adjusting. He is the Vice President of the Collier Count Code Enforcements Board at present. As a public adjuster John has recovered millions of dollars on behalf of his clients.

All Service Adjusting is an advocate of the insured homeowner and is dedicated to public service, which includes educating clients about wind and hurricane losses, flood damage, fire and smoke damage, and more. All Service Adjusting serves the states of Florida and Georgia. What you need to know when asked for an Assignment of Benefits

What is an Assignment of Benefits (AOB)?

Assignment of Benefits is a legal contract between you and a third party, such as a roofer, contractor, or other vendors. The AOB allows the homeowner to transfer specific rights that your insurance policy grants you to a third party. These rights allow the third party to file a claim and/or lawsuits on your behalf. By entering into an AOB arrangement you forfeit all rights to being paid directly by the insurer. Most vendors that operate this way have staff attorneys that negotiate and litigate your claim and once a claim is settled the insurer makes the check payable to the vendor and not to you. This process is an assignment of your benefits to a vendor that may not work in your best interest.

How can an AOB be harmful?

There are reputable vendors that use this practice but there are far too many unethical contractors that commonly use AOBs to inflate the cost of damages resulting in litigation and higher homeowner premiums. This type of litigation has, in part, led to the current increase in Florida homeowner insurance costs. Here is an example; In the aftermath of a major storm event, such as Hurricane Irma in 2017 the State of Florida was overrun by roofers that came from out-of-state to assist in the aftermath and clean up. Unsuspecting homeowners were duped into believing these unethical vendors would process their claims efficiently and on their behalf. Once the assignments of benefits document were executed the vendor was never heard from again and the unsuspecting homeowner was not aware the vendor was paid directly by the insurer and the homeowner was never paid a dime. This is why it is critical to select a local reputable company to work with and you should avoid executing an assignment of benefits under duress. 

Another example is when vendors inflate the value of their work and get overpaid. In a case like this, the vendor (AOB holder) estimates damages at $20,000 and the attorney litigates the insurance company and is successful in collecting $50,000 from the insurance company. The vendor purposely overbills the insurance company and receives the $50,000 benefit and the homeowner never sees a check or payment and the homeowner did not receive the benefit of the $30,000 in overcharges. The sad thing is the individual homeowner may be able to afford an attorney to litigate the insurance company like the vendor who has a bevy of attorneys on staff for the sole purpose of maximizing their claim since you assigned your rights to them.

Where to look?

Look in the fine print and context of every contract. Unethical vendors are not going to tell you or explain to you that you are assigning all rights and benefits to them in a negative way. They want you to think they are working in your best interest. 

Need to know information!

A public adjuster as All Service Adjusting must hold a license in Florida as an all-lines adjuster and will represent your best interest as a homeowner. For more information on the assignment of benefits you may contact John Fuentes at 833-926-8272 or by email at john@serviceadjusting.com, or, visit their website at www.serviceadjusting.com