Assignment of Benefits (AOB)

An Assignment of Benefits (AOB) is a legal agreement where you transfer your insurance claim rights to a third party—typically a contractor, roofer, or restoration company—allowing them to deal directly with your insurer.

How AOB Works: 1. You experience damage and call a contractor 2. Contractor asks you to sign an AOB 3. You transfer claim rights to the contractor 4. Contractor handles the entire claim 5. Insurance pays the contractor directly

Potential Benefits:

• Contractor handles paperwork
• No upfront payment required
• Repairs can start quickly
• Less stress for homeowners

  Significant Risks:

• Loss of control over your claim
• Contractor may inflate costs
• You may be liable for amounts insurer won't pay
• Disputes can result in lawsuits
• You can't easily change contractors

  Before Signing an AOB:

1. Read the entire document carefully 2. Understand what rights you're giving up 3. Get multiple repair estimates first 4. Check contractor licensing and reviews 5. Consult your insurance company 6. Consider alternatives

Alternatives to AOB:

• Pay contractor directly, submit for reimbursement
• Have contractor work with your adjuster
• Handle the claim yourself with documentation

  State Regulations:

Some states have restricted AOB practices due to fraud concerns. Check your state's laws.