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The Problem with Assignment of Benefits

homeownersInsuranceHave you ever heard of “assignment of benefits”?  Private insurance companies are putting in requests to the state to approve two important policy revisions aimed at reducing losses from this practice.  Last month, the Florida Office of Insurance Regulation gave Citizens Property Insurance Corporation the okay to limit costs involving emergency repairs after a loss caused by water damage, for example, to $3,000.  The office also agreed that a representative from the insurance company must inspect the damage prior to beginning any repair work.  In less than a month, eleven other insurance companies have sought approval requests for these same revisions. The insurance companies want to limit your ability to repair your property prior to them inspecting in order to allow them to send their preferred venders to repair your loss and save them money.

Insurance companies blame mitigation and water extraction companies for increase cost of insurance, claiming that they allegedly overbill them for work that may be excessive or unnecessary and then resort to litigation should the insurer fail to pay the full claim.  These companies also claim that losses often go unreported until the repair work has already been completed. Be on the lookout for changes in your policy that can substantially affect your rights and responsibilities in the event you suffer a loss and must file a claim with your insurance company.

For several years now, insurance companies have attempted to get lawmakers to place restrictions on assignments of benefits,, thankfully, the courts continue to side with property owners and their rights.  As a home or property owner, you should be aware of your rights and how to deal with insurance companies. If you have any questions or are concerned about how this may affect you, contact us today.

This update is provided by Miami insurance lawyer Alonso, Perez & Santos, LLP.  Our areas of practice are insurance litigation and construction law and also include bankruptcy, debt harassment, credit card defense, foreclosure defense, immigration law,  business start-ups, and more.  Call 305-676-7545 to speak with a Miami bankruptcy attorney and or Insurance attorney to receive a free consultation and evaluation of your insurance policy.  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.