Insurance Claim Assignment in Florida
An insurance claim assignment (Assignment of Benefits or AOB) transfers a policyholder’s insurance claim rights to a third party, typically a service contractor. Florida’s 2023 insurance reform (SB 2A) effectively banned most residential AOBs to combat widespread abuse and stabilize the property insurance market.
Pre-Reform AOB Process
- Homeowner signed over claim rights to a contractor
- Contractor filed and managed the claim directly with the insurer
- Contractor could sue the insurer if the claim was denied or underpaid
- One-way attorney fees incentivized litigation
2023 Reform Changes
- AOB ban: Post-loss benefit assignments prohibited for residential property insurance
- One-way attorney fees eliminated: Policyholders can no longer recover attorney fees from insurers in most disputes
- Effective date: March 24, 2023
- Commercial insurance: Some limited assignments may still be permissible
Impact on Homeowners
- Must file and manage their own claims
- Responsible for paying contractors and seeking insurer reimbursement
- Public adjusters have become more important for claim assistance
- More diligent documentation of damage required
Related Terms
- Insurance — Property coverage
- First-Party Bad Faith — Insurer misconduct claims
- Contract — Agreement assignment
Barnes Walker Insurance Services
Barnes Walker’s attorneys advise homeowners on insurance claims and coverage disputes under Florida’s current insurance framework. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 627
Regulates property and casualty insurance in Florida, including coverage requirements, claims handling, and the Citizens Property Insurance Corporation for high-risk properties.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC