Updated: Aug 9
An AOB (Assignment of Benefits) is an agreement that, once signed, transfers the insurance claims rights or benefits of the policy to a third-party, giving them permission to directly receive payment for your claim.
The third-party gains authority to file a claim, make repair decisions,
and collect insurance payments without your involvement.
Unfortunately, AOB fraud is known to occur. AOB fraud happens when contractors inflate the cost of repairs, charge a fee for handling the claim, and include damage which may not be a result of a storm or hurricane. In addition, the contractor may or may not be licensed and could "disappears" with the settlement, without completing the repairs.
The impact on you may even be worse. In addition to the financial responsibility you will incur to complete the job, now you run the risk of being canceled by your insurance carrier. If this happens, you may find it challenging to obtain new homeowner's insurance.
Read more below from The Florida Department of Financial Services: