Water Damage?


If you have ever had water damage, you know it can be a challenging time. A puddle at best and nearly a body of water at worst, it ruins not only your day, but your carpet and anything else in its path as well. What could be worse?

Always keep your insurance company in the loop to help ensure you maintain control of your claims process and contractors don’t inadvertently make it more challenging.

water-damage-infographic-sized for webIn Florida, this tends to happen the most with water damage, when contractors pressure homeowners to sign an Assignment of Benefits (AOB) contract. You could lose control over your insurance claim, and potentially make your situation worse - and even put your home at risk.

In an Assignment of Benefits (AOB) contract, there are usually words to the effect of “I transfer and assign any and all insurance rights, benefits, and causes of action under my property insurance policy to the contractor.”

When you sign this type of contract, you may:

  • Give up your rights to your claim under your homeowner’s policy
  • Give up your right to any money for your damage to that contractor
  • No longer have control or a legal right to your claim

What do you stand to lose?
If the contractor receives the payment directly from the insurance company, they can take the check and never perform any repair work on your home. Or they can submit an inflated claim to your insurance company.  If the  bill exceeds what is covered by your homeowners insurance policy, you’re on the hook to pay the difference. The contractor could place a lien on the home, and contractor liens in Florida can be enforced by foreclosure.

Follow These Tips to Avoid Getting Scammed

  • Call in your claim right away.
  • Don’t sign contracts you don’t fully understand.
  • Beware of anyone who solicits your business.
  • Beware of anyone who offers to replace anything for free.
  • Use Nexxus Solutions, our network of preferred contractors.
Please include details about your experience with American Integrity Insurance.