AOB Is a Four Letter Word

Hi Harbour clients and friends;

I hope you are enjoying this cooler weather in Florida.  If you recently experienced damage by Hurricane Ian, I am sorry.  I am sure you are close to starting to repair damage.  Many people have recently asked me, “Should I sign an Assignment of Benefits (AOB) letter to let my roofer take over my insurance claim and repairs of my roof?” My answer is never.  AOB is a four letter word!

First, let’s talk about what an assignment of benefits is.  Simply put you sign a contract with a company giving them total control over the insurance claim process and repairs.  Any payout is paid directly to the roofing company, not you, and the roofing company has any and all right on how to determine repairs.  Essentially, you give up your right to manage your claim and ensure it is resolved to your complete satisfaction.

At a time of loss we all just want the damaged property to be fixed quickly.  It is a very venerable time and some unethical roofing companies canvas neighborhoods telling customers whatever they want to hear.  Often, they say if you sign the AOB we will take care of everything for you and you won’t have to worry about anything.  Or they will say that if you sign the AOB that they will start right away and can get the job done quicker.  Please be careful and do your research.

Another reason to not sign an AOB is that the roofing company will inflate your claim with the insurance company and may max out your coverage on your roof and exhaust your coverage for other areas of your damaged home.  Recently in Cape Coral one of our clients was presented with an AOB contract to re-roof their home for $400k!  Their total policy was for $500k so they would have only had $100k for the rest of their home.

You also lose total control to hold people accountable. You are no longer the insurance company’s client.  They have to pay the roofer, not you.  If you are not satisfied with the job, you have no recourse.

AOBs are the main reason why all of our premiums have risen the last few years.  They increase claims and fraud, and you lose control of the process.

If you recently signed an AOB and want to revoke the contract there are ways that you can.

Steps to Rescind an AOB Contract
Written notice to rescind the contract may be submitted to the third party:

1. Within 14 Days after executing the AOB contract.
2.  At least 30 days after the date the third-party vendor is scheduled to start work, if that vendor has not already completed a substantial amount of the work.
3. At least 30 days after executing the AOB, if the AOB does not have a start date for the work and the third-party vendor has not begun substantial work on the property.

I hope this info helps you in the claims process.  I am really sorry we all have to go through this.  But I have been here before a few times and with some hard work now things will get better.