Several groups including Florida lawmakers and the state’s Chamber of Commerce allege that a loophole in state law may be causing insurance bills to skyrocket, and it has a lot to do with the assignment of benefits (AOB).
According to these groups which also include consumer watchdogs, homeowners often fail to fully comprehend what they’re getting themselves into when they sign over their AOB. A couple in Clearwater decided to install a new garbage disposal and noticed a leak. After contacting a plumber, the plumber referred the couple to another contractor after signing over their AOB, alleging he detected the odor of mold. By signing the AOB, the contractor could make decisions on behalf of the couple.
Several days later, a crew began tearing out the kitchen. Despite challenging the claim, the insurance company compensated the company that tore out the kitchen. After hiring another company to take care of kitchen rebuilding, the couple had to shell out more than $15,000.
The example above is one of many of homeowners signing over their rights without realizing what it is they’re signing. You can read more about it by visiting the following link: http://www.fox13news.com/consumer/legal-loophole-lets-contractors-take-advantage-of-homeowners.
This information is provided by Miami insurance lawyer Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with a Miami insurance claims lawyer 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.