Assignment of benefits, and why the door-knocker still has one
On any Florida residential policy issued from 1 January 2023†, a policyholder may not assign, in whole or in part, any post-loss benefit under a residential property insurance policy†. So if someone arrives after a storm asking you to sign an assignment of benefits, the request itself is worth pausing over — either the paperwork is out of date, or the person holding it is.
A crew knocks the week after a hurricane. They will "handle everything with the insurance company", and the form is presented as routine authorisation. What it once did was transfer your rights under the policy to them — after which they dealt with your insurer, and you had given away control of your own claim. On a modern policy that transfer is no longer permitted.
What an AOB was, and what it did
An assignment of benefits transferred a policyholder’s post-loss rights to a third party — usually a contractor or restoration company. Once signed, that company could claim directly against the insurer, negotiate the amount, and sue in its own name. The homeowner was no longer the one deciding what to accept.
The intent was benign enough. A homeowner with a flooded house wants the drying company to start immediately and deal with the paperwork later. The problem was structural: the party doing the work was also the party deciding what the work was worth, and the person paying the premium had stepped out of the conversation.
How the law moved
| From | Position |
|---|---|
| Before 2019 | Largely unregulated. AOBs were common and litigation volume was extreme. |
| 1 July 2019† | Regulated but permitted — required disclosures, cancellation rights, notice requirements. |
| 1 January 2023† | Prohibited on residential policies issued from that date. |
It turns on when your policy was issued, not on when the storm happened. An older policy that has not been renewed under the new rules may still sit under the previous regime. Check the issue date on your declarations page before assuming either way — and if you already signed one under an older policy, that is a different situation from signing one today.
What to do instead
- Authorise emergency work without assigning your claim. You can absolutely hire someone to tarp the roof or start drying. Signing a work authorisation and a price is not the same as handing over your rights under the policy.
- Report the claim yourself. Notice is due within 1 year† of the loss, and the insurer must pay or deny within 60 days†.
- Read anything before signing it, on the day you are least able to. That is the whole point of a post-storm doorstep — you are exhausted and the house is wet. Nothing legitimate needs a signature before you have read it.
- If you want someone in your corner, use a licensed public adjuster — a regulated relationship with a statutory fee cap, rather than an assignment of your rights.
Red flags on a post-storm doorstep
- A form presented as routine, with the words “assignment”, “transfer” or “benefits” anywhere in it.
- Pressure to sign today, before you have spoken to your insurer.
- An offer to “waive your deductible” — which is insurance fraud, and it makes you a participant.
- No licence number offered, or one that does not match the name on the contract.
- A blank or open-ended price. “Whatever insurance pays” is not a price.
- Reluctance to leave the paperwork with you overnight.
Genuine, licensed contractors do canvass after storms, and the good ones are busy precisely because they are good. The test is not whether they came to you — it is whether they will give you their licence number, a defined scope, a real price, and time to read it. Anyone who fails that test would have failed it before the storm too.
Related
Common questions
Are assignments of benefits banned in Florida?
Effectively yes for modern policies. A policyholder may not assign post-loss benefits under a residential property insurance policy issued on or after 1 January 2023. Older policies may still fall under the earlier regulated regime.
Should I sign an AOB after a hurricane?
No. On a current policy it is not permitted, and the request itself is a signal. You can still authorise emergency work with a defined scope and price — that is different from assigning your rights under the policy.
What is the difference between an AOB and hiring a contractor?
Hiring a contractor is a work agreement between you and them. An AOB transferred your rights under the insurance policy, letting them negotiate and sue the insurer in their own name while you lost control of the claim.
What if a contractor offers to waive my deductible?
Walk away. That is insurance fraud, and accepting it makes you a participant rather than a victim. It is also a reliable indicator of how the rest of the job will be run.
Who can help with my claim if I cannot sign an AOB?
A licensed public adjuster. It is a regulated relationship with a statutory fee cap — 20% ordinarily, and 10% for claims arising from a declared emergency within the following year.
Assignment of benefits is governed by Florida Statutes §627.7152, amended by SB 2-A. Which version applies depends on when your policy was issued — check the date on your declarations page.