The Good, the Bad and the Ugly of an ‘Assignment of Benefits’

hurricane michael florida insurance claims

Assignment of Benefits, also called Assignment of Claim, basically means you are giving up your Rights to your Insurance Policy and are essentially handing it over to the person, usually a Contractor, to make decisions for you.  These generally aren’t a good idea as there are issues if certain things aren’t addressed and included in the documents.

How do I know if an AOC is right for my situation?

Deciding to agree to an AOC really depends on what your Claim entails and the AOC should always be written so it benefits the Property Owner.  An AOC can have either Full Assignment or Partial Assignment.  Full Assignments aren’t good in that you are giving away 100% of your Rights and that leaves your property at the mercy of someone else.  However, before you sign either of these, you need to make sure you have and are working with a reliable and trustworthy Contractor.

However, an AOC with Partial Assignment could be beneficial in certain situations where the work is general, such as Mitigation, Tarping, etc but there are two key factors that are necessary.  To make this situation successful, the first of these are the Deadlines.  Those need to be specific and it should also state the property must be in Pre Loss Condition when that Deadline is met.  Secondly, the AOC should state the Contractor should be responsible for any and all fees such as Public Adjuster Fees, Expert Fees, etc.

Does Noble write AOC’s?

 AOC’s are legal documents and if you are interested in one for your property or have been asked to sign one, we recommend you seek Legal Advice before signing anything.


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