Restoration Association Of Florida Sues To Block Law Targeting Contractors

The Restoration Association of Florida (RAF) on Tuesday filed a lawsuit in a Leon County Circuit Court claiming that a new law approved by the Florida Legislature last week unconstitutionally singles out home repair contractors rather than targeting the rudimentary catalysts causing Florida’s homeowner’s insurance crisis.

The law, SB 2-D, allegedly isolates contractors by stripping them of legal rights in cases of repair work involving assignments of benefits (AOBs).

Assignment of Benefits (AOB) is an agreement that transfers the insurance claims rights or benefits of the policy to a third party. An AOB gives the third-party authority to file a claim, make repair decisions, and collect insurance payments without the involvement of the homeowner.

The law prevents contractors who hold AOBs from recovering their attorneys’ fees if they prevail against insurance companies.

Homeowners and insurers keep their right to recover prevailing party fees, and the new law denies those rights only to contractors violates the equal protection clause of the Florida Constitution, the lawsuit says.