Understanding Assignment of Benefits (AOB)
Assignment of Benefits (AOB) is commonly used by contractors and service providers to help policyholders with insurance claims. While AOB can be helpful, it often causes delays and higher costs in Florida. This has made many homeowners wonder how to get out of AOB agreements. They also ask if it’s possible to work with contractors who don’t require AOB contracts.
In this blog, we will cover the pros and cons of AOB agreements. We’ll also explain how to get out of an AOB agreement. Lastly, we’ll show why ORC Services, which does not use AOB contracts, could be a better choice for homeowners.
Pros and Cons of AOB Agreements
Benefits of AOB
One main benefit of an AOB agreement is quick help with insurance claims. With AOB, the contractor communicates directly with the insurance company. They provide quotes, send invoices, and receive payment. This can speed up the claims process. This speed is very useful during disasters like hurricanes or flooding.
Another benefit is access to skilled contractors. Especially if the claim needs specialized work such as water damage repair, mold remediation, or emergency fixes.
Drawbacks of AOB
A major downside is potential abuse. Some contractors inflate costs or exaggerate needed work. They may also delay insurance payments to collect legal fees. Homeowners who don’t fully understand AOB terms can face hidden fees, delays, and unnecessary repairs.
AOB agreements can also block homeowners from dealing directly with their insurance company. This can make disputes over payments or work scope harder to resolve. Often, this leads to costly legal battles.
Finally, AOB can raise insurance premiums. Fraudulent claims increase insurer costs. These costs get passed on to homeowners as higher premiums.
How to Get Out of an AOB Agreement
If you want to end your AOB agreement, follow these steps:
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Review Your Contract
Read your AOB contract carefully. Understand your options and obligations. -
Consider Legal Advice
A lawyer can explain your rights and help avoid misunderstandings. It’s best to get legal advice before signing an AOB agreement. -
Communicate with the Contractor
Let your contractor know you want to end the agreement. If your claim is ongoing, tell them you will handle insurance communication directly. -
Contact Your Insurance Provider
Inform your insurer that you will take over all claim and billing communications. -
Document Everything
Keep records of all communication with your contractor and insurance company. Save emails, letters, and notes from phone calls. Documentation helps if disputes arise.
Why ORC Services is a Better Option than AOB
Not all contractors use AOB contracts. ORC Services, a Florida-based company, does not require AOB agreements.
About ORC Services
ORC Services offers construction and restoration for homeowners, businesses, and government clients. They specialize in water damage repair, mold remediation, fire damage restoration, general repairs, and remodeling.
Benefits of Choosing ORC Services
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No Hidden Fees
ORC Services provides clear pricing upfront. They explain all costs including labor, materials, and insurance expenses before starting work. -
Direct Communication
ORC Services works directly with homeowners and insurance companies. They do not require signing an AOB contract. -
Experienced Contractors
Their licensed and skilled contractors deliver high-quality work. They handle projects big and small with expertise and professionalism.
Conclusion
AOB agreements have benefits but also bring risks like delays and higher costs. To exit an AOB, review your contract, communicate with your contractor, and notify your insurance provider. Seek legal advice if needed and keep good records.
Alternatively, choose contractors like ORC Services who do not use AOB agreements. They offer transparent pricing, direct communication, and skilled workmanship. This approach helps homeowners avoid AOB pitfalls and enjoy a smoother restoration experience.