Assignment of Benefits (AOB) has become a common tool for contractors and service providers to help policyholders deal with insurance claims. Although AOB can be a useful tool, the process is often associated with delays and increased costs in Florida. This has led many homeowners to question how they can get out of AOB agreements, and whether it’s possible to work with contractors who do not require AOB contracts. In this blog, we’ll discuss the pros and cons of AOB agreements, and also explore how to get out of an AOB agreement and why ORC Services, which does not use AOB contracts, might be a better choice for homeowners.
Pros and Cons of AOB. Before focusing on how to get out of an AOB agreement, it is essential to understand the benefits and drawbacks of this service.
Benefits. One of the primary benefits of an AOB agreement is that homeowners can receive immediate and quick assistance with their insurance claim. Under an AOB agreement, the contractor is authorized to communicate directly with the insurance company, providing quotes, invoicing, and receiving payment. This can help to speed up the claims process, which can be especially advantageous in disaster situations such as hurricanes or flooding.
Another benefit is that AOB agreements can give homeowners access to more experienced contractors, particularly if the claim requires specialized work like water damage restoration, mold remediation, and emergency repairs.
Drawbacks. The primary disadvantage of an AOB agreement is the potential for abuse, whereby contractors inflate costs, exaggerate the scope of work required, or attempt to delay insurance payments to obtain legal fees. Homeowners who sign AOB contracts without fully understanding the terms and conditions often suffer from hidden fees, delays, and unnecessary repairs.
Additionally, AOB agreements can prevent homeowners from working directly with the insurance company to resolve disputes such as underpayment or disagreement about scope of work. This can often result in costly litigation and arbitration.
Another significant disadvantage of AOB is that it may lead to higher premiums, especially if there are fraudulent practices that drive up costs. This is because insurance companies face litigation costs for disputes related to fraudulent claims, which are often passed on to the policyholders via increased premiums.
How to Get Out of an AOB Agreement. If you ever feel uncomfortable with your AOB agreement and wish to get out of it, there are several steps you can take:
- Review your contract carefully. Carefully review the terms and conditions of your AOB contract to determine what options you have for getting out of the agreement. This should give you a better understanding of the process to follow and what obligations you have as the homeowner.
- Consider legal advice. Before taking any action, it may be helpful to seek legal advice to better understand your rights and obligations under the contract. Having a lawyer review the contract before you sign can also help you avoid misunderstandings regarding the terms and conditions of the AOB agreement in the first place.
- Communicate with the Contractor. Contact the contractor about ending the agreement. Inform them of your desire to end the AOB agreement and express your concerns. If you are in the middle of a claim, it’s important to let the contractor know that you’ll be taking over the communication with your insurance provider.
- Contact your insurance provider. If you’d like to end the agreement, contact your insurance provider and explain what’s happening. Let them know that you will be taking over communication regarding all claims and billing going forward.
- Document all communication. Document all communication with your contractor, insurance company, and any other parties involved in your claim. This includes written communication such as emails and letters, phone calls, and any verbal agreements. Keeping accurate records of your communication can help you in case of disputes or misunderstandings.
ORC Services Offers Better Solution than AOB. While some contractors employ AOB contracts, not all adopt this approach. One such company is ORC Services that does not require AOB agreements.
ORC Services, based in Florida, is a reputable construction and restoration company that provides services to homeowners, businesses, and government entities. The company specializes in a range of services, including water damage repair, mold remediation, fire damage restoration, general repair and restoration services, and remodeling.
Here are a few reasons why choosing ORC Services is a better option than using a contractor who employs AOB agreements:
- No Hidden Fees. One of the main concerns for homeowners who sign AOB contracts is hidden fees. ORC Services avoids this issue by being upfront about the total cost of services from the outset. The company provides a detailed explanation of all costs, including labor, materials, and insurance expenses, before starting work.
- Direct communication with homeowners. At ORC Services, the focus is on providing personalized services to customers. The company communicates directly with homeowners instead of going through an AOB process and usually deals directly with the insurance company in question. And, at no point, would ORC Services ever require a homeowner to sign an AOB contract.
- Experienced and Licensed Contractors. ORC Services employs experienced and licensed contractors who provide top-quality services to homeowners. Their competent team of contractors can handle most renovations and restorations, as they have a vast range of skills that can handle any job, big or small.
ORC Services has the necessary expertise and resources to carry out repairs and renovations quickly and professionally.
Conclusion. In conclusion, AOB agreements can be beneficial, but they can also be costly and lead to delays. To get out of an AOB agreement, review your contract, communicate with your contractor, and contact your insurance provider. Consider seeking legal advice and documenting all communication to avoid disputes and misunderstandings.
Furthermore, homeowners can avoid these hassles by opting for contractors and service providers like ORC Services that do not require AOB agreements. The company has been providing services for years and is known for its commitment to quality and reliability, which is evident in their work and customer feedback. It’s an excellent alternative that allows homeowners to bypass the pitfalls of an AOB and enjoy a better restoration experience.