Can a Restoration Company Assign Benefits From My Insurance?

An assignment of benefits, often called an AOB, is a legal document you sign that gives the pros permission to collect your insurance payment directly from your insurer. Instead of the insurance company sending the check to you, the payment goes to the pros who performed the restoration work on your home. This can simplify the payment process for you, as you do not need to handle the money yourself.

However, signing an AOB is not a small decision. It transfers some control over your claim to the pros. You should read every line of the document and ask questions if anything is unclear. You have the right to refuse to sign an AOB, and you can also negotiate the terms before you agree.

• An AOB is a legal contract, not a simple form
• It lets the pros receive payment directly from your insurer
• You can ask for a copy of the document before signing
• You can negotiate the terms of the AOB
• You can choose not to sign an AOB at all
• Your insurance company must approve the assignment

There are some risks to signing an AOB. If the pros do not complete the work as agreed, you may have less leverage to withhold payment. Also, if the insurance company pays the pros more than the work is worth, you might be responsible for the difference. You should ask the pros to explain exactly what they will do and how much they will charge.

Your insurance policy may have specific rules about assignments. Some policies require you to notify the insurer before you sign an AOB, and others may have clauses that limit your right to assign benefits. Check your policy documents or talk to your insurer to understand your situation. Policies vary, and your insurer decides what is covered.

You do not have to assign your benefits to the pros. You can choose to pay for the restoration work yourself and then submit the receipts to your insurance company for reimbursement. This keeps you in control of the payment, but it means you need to have the funds available to pay upfront.

Another option is to ask your insurance company to pay you directly, and then you pay the pros after the work is complete. This arrangement can be simpler to understand, but it requires you to manage the payment process. If you live in Columbus, you can always ask a local water damage pro to explain the pros and cons of each method before you decide.