{"id":1076,"date":"2017-06-20T20:19:10","date_gmt":"2017-06-20T20:19:10","guid":{"rendered":"https:\/\/www.homeinsuranceking.com\/blog\/?p=1076"},"modified":"2017-06-20T20:19:22","modified_gmt":"2017-06-20T20:19:22","slug":"florida-must-tackle-insurance-assignment-benefits-problems","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/florida-must-tackle-insurance-assignment-benefits-problems\/","title":{"rendered":"Florida Must Tackle Insurance ‘Assignment of Benefits\u2019 Problems"},"content":{"rendered":"
\"Florida

One of the major concerns Atwater and other Florida officials have is the increase in homeowners insurance rates as well as the possibility that insurers will pull out of certain areas.<\/p><\/div>\n

Florida’s Chief Financial Officer, Jeff Atwater recently addressed lawmakers and stated that the assignment of benefits insurance practice must be addressed as it continues to drive up homeowner insurance rates in Florida<\/a>.<\/p>\n

While lawmakers looked at the problem this spring they could not agree on changes so nothing was done about a practice that insurance companies say is riddled with abuse and fraud. Insurers claim that the assignment of benefits practice is increasing homeowners insurance costs across the state.<\/p>\n

What is Assignment of Benefits?<\/strong><\/p>\n

Homeowners who need property repairs damage are asked by their contractor to sign an assignment of benefits (AOB) form, which signs over their insurance benefits to the contractor who then requests payment from the insurer. Insurance companies say that this process has led to abuse by a number of contractors who partner with shady law firms to sue the insurer. This can dramatically push up the cost of a claim.<\/p>\n

In many cases, especially roofing and flood damage claims, the work is either not done or done shoddily and the contractor requests payment leaving the homeowner with a still damaged home.<\/p>\n

In other cases, the contractor working with a less than honest law firm will dramatically increase the cost of repairs and then sue the insurance company when the claim is denied. Due to the cost of litigation many insurance companies will settle the claim out of court and pass the cost of these lawsuits on to other homeowners via higher premiums.<\/p>\n

On the other side of the fence, contractors and lawyers feel that the assignment of benefits process forces insurance companies to properly pay claims.<\/p>\n

What Can Be Done?<\/strong><\/p>\n

Atwater called for changes to existing laws while also being careful to avoid the appearance of favoring the insurance industry.<\/p>\n

\u201cWe never want to harm any individual out there in getting the absolute quick and full coverage they deserve on a claim,\u201d said Awater. \u201cBut the majority of this right now is costing the honest Floridian tremendous pain.\u201d<\/p>\n

One of the major concerns Atwater and other Florida officials have is the increase in homeowner rates as well as the possibility that insurers will pull out of certain areas.<\/p>\n

\u201cWe are going to continue to see homeowners\u2019 insurance companies raise their rates for our consumers in a best-case scenario, and in a worst-care scenario, just simply stop offering their products in certain regions of the state,\u201d said Insurance Commissioner David Altmaier.<\/p>\n

In the spring the Florida house approved a bill (HB 1421), which would have made several changes to the current law to help curb litigations regarding assignment of benefit claims. The Senate did not take up the bill due to opponent\u2019s criticism that the bill was too favorable to insurance companies.<\/p>\n

It is highly likely that the subject will be addressed in the coming session of the Florida legislature but as it stands now the current laws still allow assignment of benefits contracts for home repairs.<\/p>\n

Dealing with a Claim<\/strong><\/p>\n

Here are a few quick tips for dealing with the claim to make sure that you are paid fairly and quickly:<\/p>\n