An Assignment of Benefits (AOB) is one of the most significant documents a contractor can ask you to sign — and many homeowners don't realize what they're agreeing to.
What an AOB does
An AOB transfers your rights under your insurance policy to the contractor. Once signed, the contractor — not you — negotiates directly with your insurer, receives the insurance payment directly, and controls the claim process. You give up control of your own claim.
Why Florida restricted AOB
Florida's AOB abuse was so widespread that in 2023, the Legislature effectively eliminated AOB assignments for most property insurance claims (SB 2-A). Contractors who heavily pressured homeowners into AOBs were collecting inflated payouts through litigation — driving up insurance premiums statewide. Florida is no longer the Wild West it was on AOB — but other states still are.
When AOB might be legitimate
There are legitimate uses — but you should understand exactly what you're signing and consult with your insurance agent before transferring any rights. Never sign an AOB under pressure.
Any contractor who makes an AOB a condition of starting work, or who minimizes it as "just paperwork." It is not just paperwork.
