An Assignment of Benefits is when an individual (the “insured”) allows a third party to seek reimbursement for property repairs by transferring the rights and benefits encompassed in their insurance policy. The most common example is when a homeowner makes immediate repairs to their home and legally transfers their insurance benefit to the contractor performing the repairs in lieu of or in addition to payment. The contractor will then seek compensation from the insurance company via the AOB.
If you are a contractor seeking payment from an insurance company for work performed and the claim has either been denied or underpaid, litigation may be your next step.
If you are a homeowner looking to understand more about the AOB as it relates to your specific situation, please reach out to us.