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Florida Case Involves Assignment of Benefits Restrictions

A Florida Appeals Court recently made the news after allowing assignment of benefits (AOB) restrictions regarding homeowners insurance policies. The news comes as hurricane season has ramped up with the arrival of storms like Gordon and Florence.

The case involved a pair of homeowners (husband and wife) who signed a contract with a water restoration company for purposes of fixing their mortgaged property damage caused by water. Unbeknownst to the husband or the mortgagee, the wife had also agreed to “an assignment of benefits agreement assigning ‘any and all insurance rights, benefits, proceeds and any cause of action under any applicable insurance policies’” to this company responsible for fixing for the water damage. However, the couple’s insurance policy also had a condition in place stating that no assignment of benefits condition would be valid unless all “insureds” and mortgagees named in the policy had provided written consent.

The insurance company eventually received a claim from the water restoration company under the assignment, which the insurer refused to pay in full because of the previously mentioned AOB provisions. The water restoration company responded by filing a lawsuit against the insurer for alleged breach of contract.

Ultimately, the insurer’s motion to dismiss was granted because of the AOB provision. You can read more about the case at the following link: https://www.hklaw.com/publications/Florida-Appeals-Court-Allows-Assignment-of-Benefit-Restrictions-in-Homeowner-Policies-09-05-2018/?utm_source=Mondaq&utm_medium=syndication&utm_campaign=View-Original.

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 attorney 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.