One of the biggest challenges facing homeowners’ insurance companies in Florida during the past decade has been the rise of assignment-of-benefits claims.

An assignment of benefits (AOB) occurs when a policyholder assigns the benefits owed under a policy to a third party after a loss has occurred. Typically, these third parties are contractors and remediation companies that perform water extraction and property repairs following the loss.

During the last 10 years, AOBs have become common in property insurance claims. Plaintiffs’ attorneys seeking a lucrative new area of practice are conducting workshops in which they teach contractors and remediation companies “inside secrets that insurance companies don’t want you to know.”