Assignment of benefits

What it means

An assignment of benefits transfers some or all of your rights under an insurance policy to someone else, usually a contractor. Once you sign, the contractor can bill your insurer directly and, in some cases, sue it in your place.

Florida changed the rules in 2023. For residential and commercial property policies issued on or after January 1, 2023, an attempt to assign post-loss benefits is “void, invalid, and unenforceable” (§627.7152). For policies issued from July 1, 2019 through the end of 2022, AOBs are still allowed, with required notices and a right to rescind within 14 days, or longer if substantial work has not started.

Why it matters to your claim or your bill

Signing an AOB means giving up control of your claim. The Florida Attorney General warns never to sign one under pressure or with blank spaces. Check your policy’s issue date on the declarations page before signing anything that mentions benefits, assignment or direction to pay. Even without an AOB, Florida contractors may not interpret your policy or adjust your claim unless licensed as a public adjuster (§489.147). Outside Florida, rules vary by state. Ask your insurer, your state insurance department or an attorney before you sign. Our page on restoration scams and red flags covers related paperwork.