The Assignment of Benefits Scam
Thursday, April 6, 2017
When a property owner discovers water damage in their home or business, their first thought may be to call a water remediation company, contractor, or the like to dry out the building. But if the owner doesn’t choose the right one, that call can be a very costly mistake. There have been an increasing number of property owners who have unwittingly signed contracts with water remediation companies that require Assignment of Benefits agreements, and they have ended up paying dearly in more ways than one.
Currently, there is a bill being considered by state legislators, titled Senate Bill 1038, that addresses the exploitation of “Assignment of Benefits.” For those who are unfamiliar with this phrase, Assignment of Benefits allows contractors, roofers, loss remediation technicians and the like, to take control of a homeowner’s claim, permitting the contractor to collect the claim settlement funds directly from the property owner’s insurance company. That is, ONLY IF the property owner signs the appropriate forms for the dishonest company to do the work in the first place.
The following video explains the very negative effects that signing Assignment of Benefits can have on the property owner both directly and indirectly.
Remember, as a property owner, DO NOT choose a contractor, roofer, or loss remediation specialist that forces you to sign an Assignment of Benefits. DO NOT sign any contract documents with any language you do not fully understand. When in doubt, call your insurance agent for advice and an explanation of questionable forms. Lastly, consider contacting your Florida state legislators to tell them to vote YES on Senate Bill 1038.
Joe Taylor Restoration DOES NOT include Assignment of Benefits in our contract, leaving control of the claim in the rightful hands of the property owner. As a preferred vendor for over 45 insurance carriers in South Florida, we are not part of the scam that is Assignment of Benefits. We are part of the solution.
For more information, see the following related blog posts: