- 16 Jan
Changes May Be Coming to Assignment of Benefits
This year may be the one that finally brings changes to the assignment of benefits (AOB) fiasco. According to a recent article published on FloridaWatchdog.org, the Florida House has expedited the adoption of a bill (HB 7015) that would result in various restrictions placed upon AOB agreements between contractors and property owners.
The bill would get rid of the “one-way” attorney fee provision that has resulted in an avalanche of lawsuits insurance companies have blamed for dramatically increasing Florida’s insurance rates for homeowners. Should the insurer and a contractor dispute a claim in court, the insurance company would be required to pay the attorney fees for both sides if its estimate was off, even by just one dollar.
With HB 7015, insurance companies will receive attorney fees if the adjustment was off by less than 25 percent. However, they would receive nothing if the adjustment is off between 25 to 50 percent. If the insurer’s claim was off by more than 50 percent, then the contractor would be awarded attorney fees.
This information is provided by Miami insurance attorney Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.