Florida limited and then largely ended residential AOB agreements. Here's what an assignment is, what changed, and what it means when a contractor asks you to sign one.
An assignment of benefits (AOB) is a document that hands your insurance-claim rights to someone else, often a roofer, water-mitigation company, or restoration contractor, so they can bill and pursue the insurer directly instead of you. For years this was routine in Florida, and it became a flashpoint for litigation and, insurers argued, inflated claims.
How Florida tightened AOB
The legislature first added guardrails in 2019 with Fla. Stat. § 627.7152 and § 627.7153, which set formatting, notice, and disclosure requirements for AOB contracts and changed the fee dynamics in AOB suits. Then the December 2022 reforms (Senate Bill 2-A) went further and prohibited assigning post-loss benefits under residential and certain commercial property policies issued after the effective date.
What that means in practice
- New residential policies generally can’t be assigned. For policies subject to the ban, you keep your claim rights; a contractor cannot take them over through an AOB.
- A contractor can still do the work, you just pay them as your vendor and pursue the claim yourself, rather than signing your benefits away.
- Read anything before you sign. If a document says “assignment,” “direction to pay,” or transfers your rights to insurance proceeds, treat it as significant and understand what you are giving up.
Why the change was made
Supporters said AOB abuse drove up litigation and premiums; critics said assignments helped homeowners get repairs done fast without fronting money. Both can be partly true. The point for you today is narrower: the tool most homeowners could once use is now restricted, so the responsibility to manage the claim usually stays with you.
If you already signed one
An AOB executed under the older rules may still be governed by the law in effect when you signed it. Whether it is valid, and what it covers, is fact-specific. If a contractor is using your assignment to control a claim you are unhappy with, that is worth a careful look.
Handling the claim yourself
Because you are more likely to be the one dealing with the carrier now, the fundamentals matter: document the loss, understand your coverage, and track your deadlines with our tools. If measuring the loss is the sticking point, a licensed public adjuster works for you (not the insurer) and their fees are capped by § 626.854; see the public-adjuster directory. For disputed denials, our claims resources walk through the options.
This is general information, not legal advice. AOB rules turn on your policy’s issue date and exact language; confirm the current statutes and how they apply with a licensed Florida attorney.
General information, not legal advice, laws and policies vary and change. Confirm current statutes and your own dates with a licensed attorney before acting.