AOB: Know What You Are Signing

AOB: Know What You Are Signing

As an agent or policyholder, one has heard numerous times about the severe ramifications from assignment of benefit abuse. However, a topic so crucial to the solvency of our industry cannot be talked about enough. AOB abuse is plaguing the Florida homeowner’s insurance market in the guise of fraudulent contractors, underhanded attorneys, and unknowing policyholders.

Florida legalized AOB as a tool for speeding the claims process by helping homeowners avoid paying money upfront, but yet again this past legislative session no reforms were put in place to protect against the ongoing abuse. A common practice used by fraudulent contractors is to go door-to-door or initiate by phone offering a “free new roof” after a storm to an insured. Too often, an unknowing insured will sign away their rights to a contractor who then has total power to inflate the claim cost which ultimately harms nearly everyone involved.

Homeowners who sign a contract with an AOB clause can no longer even inquire about their own insurance claim. Worse yet, this clause leaves the door wide open for scheming contractors to overcharge and pad profits. AOB issues are reaching such epic proportions that Florida leaders have formed a Consumer Protection Coalition to ensure that homeowners maintain control of their own insurance policies.

Scott Johnson of Johnson Strategies, LLC asserts Florida cannot regulate its way out of this crisis. Therefore, Olympus is taking tremendous strides to ensure the policyholder and agent are as educated as possible to defend an AOB attack. It is imperative the homeowner is educated to know to always call their insurer before dealing with any contractors during the claims process. No matter what, in every emergency or non-emergency, call Olympus first. Our claims specialists are available around the clock at 866-281-2242.

This article is for informational purposes only and does not form a part of, replace, change or amend any terms, conditions, provisions or language within your Olympus Insurance policy. We encourage you to read your entire policy.