What assignment of benefits actually meant
An Assignment of Benefits is a legal document that transfers your insurance claim rights — your right to file, negotiate, and collect — to a third party. In the roofing context, that third party was almost always a contractor.
Here's how it worked in practice: your roof was storm damaged. A roofing contractor knocked on your door within hours of the storm — sometimes before the rain stopped. They said: "Sign here and we'll handle everything with your insurance company. You won't have to deal with them at all."
That document you signed was an AOB. The moment you signed it, the contractor had your insurance rights. They could file claims, negotiate settlements, and sue your insurer — all in your name, without your further involvement or approval. What could go wrong?
Contractors used AOBs to file inflated claims — and sued insurers when they pushed back
The pattern that drove Florida's insurance crisis: contractor gets AOB, files inflated claim for full roof replacement when only a repair was needed, insurer disputes the inflated amount, contractor sues insurer using Florida's one-way attorney fee statute (meaning if contractor won, insurer paid all legal fees). Insurers faced thousands of such lawsuits annually. The financial pressure drove up premiums statewide — and ultimately pushed several insurers into insolvency. You, the homeowner, often ended up with partially-completed repairs, a lawsuit proceeding in your name that you didn't control, and a higher renewal premium.
The AOB reform timeline — from abuse to ban
AOB used freely — minimal regulation
Florida contractors routinely used AOBs to take over homeowner claims, particularly after major storms. Combined with the one-way attorney fee statute, any disputed claim became a litigation risk for insurers. AOB-related lawsuits skyrocketed — from approximately 405 in 2006 to over 135,000 in 2019.
HB 7065 — First major AOB reform
Florida passed HB 7065 adding strict requirements for valid AOBs: written notice requirements, right-to-rescind periods, cost estimate requirements, and restrictions on contractor solicitation. AOBs became harder to execute correctly — but still legal.
SB 76 — Further tightening
Additional restrictions on contractor solicitation, required cost estimates before an AOB could be signed, and shortened claim deadlines. AOB abuse continued. Multiple Florida insurers became insolvent or exited the market.
SB 2-A — Complete ban for new policies
Senate Bill 2-A, effective December 16, 2022, banned AOBs entirely for any residential or commercial property insurance policy issued or renewed on or after January 1, 2023. SB 2-A also eliminated the one-way attorney fee statute, removing the financial incentive that made AOB litigation so attractive to contractors. This is the current law.
How to know if AOB applies to your policy
The cutoff is your policy's issue or renewal date — not the date of the storm, and not when you first purchased coverage.
Policy issued or renewed on or after January 1, 2023: AOBs are prohibited and unenforceable. Any document a contractor presents that purports to assign your insurance benefits is illegal. Do not sign it. If you already signed one, contact an attorney — the assignment is likely void but you should verify.
Policy issued before January 1, 2023: AOBs may technically be permitted under your policy, but they must comply with the strict requirements of Florida Statute §627.7152. Any AOB on a pre-2023 policy must include a written estimate of work, a disclosure statement, a rescission period, and other specific elements. If the AOB you were given doesn't meet all requirements, it's void regardless of when your policy was issued.
Most Florida homeowners now have post-2023 policies — AOB is prohibited
If you've renewed your homeowner policy at any point since January 1, 2023, your renewed policy is subject to the AOB ban. Most Florida homeowners' current coverage falls in this category. Check your declarations page for the policy effective date. If it shows any date in 2023, 2024, 2025, or 2026 — the AOB ban applies to you and any document a contractor calls an "AOB" is illegal.
The post-ban tactics you still need to watch for
The AOB ban didn't eliminate the incentive to redirect insurance money — it just changed the paperwork. Florida's Chief Financial Officer has specifically warned that some contractors are attempting to work around the ban. Here are the tactics to recognize:
"Direction to Pay" documents
A direction to pay instructs your insurer to send payment directly to the contractor. Unlike an AOB, it does not transfer your policy rights. The insurer pays the contractor, but you remain liable for the full contract amount if the insurer denies or underpays. Florida's CFO has warned that some contractors are falsely marketing direction-to-pay as functionally equivalent to an AOB — it is not. If the insurer pays less than the contractor billed, you owe the difference.
"We'll handle everything with your insurance"
Contractors can legitimately meet with your adjuster and advocate for their scope of work — but they cannot negotiate your claim, accept a settlement on your behalf, or file suit in your name without a valid legal authorization. When a contractor says "we'll handle everything," ask specifically: what documents will you ask me to sign? Any document assigning claim rights is illegal for post-2023 policies.
Signing on a tablet at the door
The post-storm door-knock rush is exactly when this pressure is applied. A contractor who asks you to sign a tablet document before you've reviewed anything with your insurer is presenting paperwork that benefits them, not you. In Florida, you have a rescission period on most contractor agreements — but only if you know to use it. Never sign anything at the door without taking at least 24 hours to review it with your insurer or an attorney.
Deductible waiver offers
Any contractor who offers to waive, absorb, or "take care of" your insurance deductible is offering something illegal under Florida law. Deductible waivers are explicitly prohibited under Florida Statute §626.9641 and constitute insurance fraud — which the contractor, and potentially you, can be prosecuted for. The offer sounds appealing — but the contractor typically recoups the "waived" deductible by inflating the claim scope.
Any contractor who says "you won't have to deal with your insurance at all" is a red flag
Legitimate licensed contractors work with you through your claim — they document damage, provide estimates, meet with adjusters, and perform the work. They do not take over your claim, manage it without your involvement, or ask you to sign documents that hand them your insurance rights. If a contractor's pitch centers on removing you from your own claim process, walk away regardless of how compelling their pricing looks.
How to work with a contractor on a Florida storm claim — without an AOB
- ✓File your claim directly with your insurer. Call your insurer within 24–72 hours of discovering damage. You are the policyholder — you file the claim, you manage it. No contractor needs to be involved in this step.
- ✓Get a licensed contractor's inspection and written estimate first. Have your contractor document the damage scope and produce a detailed written estimate before — or at the same time as — the adjuster visits. The contractor can be present during the adjuster inspection to advocate for a complete scope.
- ✓Review and compare the adjuster's scope against your contractor's estimate. If there are line-item discrepancies, your contractor can help you identify them and provide supplemental documentation for a supplemental claim.
- ✓Sign a contractor agreement only after your claim is approved. A legitimate contract specifies the work scope, materials, timeline, and payment terms. Review it carefully. You can provide a "direction to pay" allowing the insurer to pay the contractor directly — but only after the settlement amount is established.
- ✗Do not sign any document before reviewing it. If a contractor presents paperwork at the door before your adjuster has visited, that paperwork benefits the contractor, not you. Read every document. Ask what it authorizes them to do. Consult your insurer or an attorney if unsure.
Need professional help navigating your claim? Hire a public adjuster — not a contractor who wants your AOB
A licensed public adjuster works for you — not the contractor, not the insurer. They document damage, prepare the claim, and negotiate the settlement on your behalf. Public adjusters charge a percentage of the claim settlement (typically 10–15%) rather than taking over your policy rights. They are licensed by the Florida Department of Financial Services and are legally bound to act in your interest. This is the legitimate professional advocacy option — not signing an AOB with a contractor.