Assignment of Benefits (AOB) Pitfalls and Perils

This action, AOB, occurs when vendors file claims with overstated costs and then threaten to sue, or put a lien on a homeowners home if the insurance company doesn’t pay them.

As a consumer, you must be very careful when vendors come to perform services and ask you to sign a form. It may give them rights over you and your policy. As agents, we see this with many companies who you may contact in an emergency situation to remediate, before you have had a chance to contact your own insurance company.

A service company may not even explain the documents that the unsuspecting homeowner may sign. This company will inflate the costs of the service as much as 4x due to third party fees. The insurer will attempt to negotiate, but the service company files suits or puts a lien on your property as the insurance company is withholding payment. The homeowner is caught in the middle.

In many situations, the claim is paid with inflated fees, but the homeowner still hasn’t had his concerns handled. The job can be incomplete, shoddy, and the policyholder has no recourse.

So, be prepared, and your best defense is to contact your agent or carrier to see if they have a preferred list of vendors who will handle the claim accordingly.

For all of your insurance needs, get the personal service that we are known for at Avrin Insurance Agency. We offer auto, homeowners, and life insurance Plans. For more information, go to our web site or call (727) 260-5520