Because insurance repairs can be convoluted, it is crucial to understand what your policy covers and remember that you have a voice when home repair claims are filed.
The purpose of an assignment of benefits agreement is to allow a third party to have control over your insurance claim, meaning they would file the claim, decide on repairs or replacements needed for your home, and collect any payments from the insurance company. All of this can be done without consulting or involving you, the homeowner.
Why Should You Avoid Signing an Assignment of Benefits Agreement?
While it may be tempting to agree to an assignment of benefits agreement so that a contractor can file your insurance claim for you, it is important to know that doing so means giving up all control over the process and could lead to issues down the road. This means:
- The contractor will have the rights and benefits of your insurance.
- The insurer will only communicate with the contractor regarding the claim.
- You won’t have any say or be able to make any decisions regarding the claim.
- The contractor will be able to file suit against your insurer without your knowledge.
- The contractor could endorse checks on your behalf.
The assignment of benefits agreement is a legally binding document that can’t be canceled. You don’t need it for repairs to begin. The State of Florida has many helpful resources you can read before you sign any sort of contract with a contractor.
Know Your Rights
By filing a claim, you keep control of the repairs and what materials are used. Make sure to read every form before signing it, and don’t sign anything until all your questions are answered. An assignment of benefits is not required for repairs to begin—don’t let anyone pressure you into signing one.
Signing an assignment of benefits agreement gives the contractor power to determine what needs to be repaired or replaced and to file a claim based on how much they are going to charge. FGB Law Firm does not recommend signing an assessment of benefits – our attorneys can work with your adjuster on your behalf to recover property damages you deserve after a hurricane or other accident. Call (941) 979-9010 or use our online contact form to schedule a consultation today.