What Is Assignment of Benefits and Is It Legal in My State?

An assignment of benefits is a document you sign that transfers your right to claim insurance benefits for a specific repair to a third party, such as a water damage restoration pro. After you sign, the pro can submit the claim paperwork and receive the insurance payment directly, rather than you paying out of pocket and waiting for reimbursement.

This arrangement can be convenient after a sudden water loss, like a burst pipe or flooding. You avoid managing the claim process yourself. The pro handles the paperwork and the repair. However, you still own the property and are responsible for any deductibles or amounts not covered by your policy.

• You sign over claim rights for a specific job
• The pro bills your insurance company directly
• You may still owe your deductible
• AOBs are common after emergency water extraction
• Read the document before signing anything

The main advantage is convenience. After a water damage event, you may be dealing with cleanup, drying, and repairs. Signing an AOB lets the pro coordinate with your insurance company, reducing your administrative burden. You do not need to file paperwork or chase payments.

Another benefit is speed. The pro can start work based on the assignment, pending your insurer's approval. This can be helpful for emergency water extraction or structural drying, where delays lead to more damage. But remember, the pro still needs to follow your policy's rules and get any required pre-authorization.

If you experience water damage, first ensure safety. Turn off the water source if possible and call a plumber for burst pipes. Document the damage with photos and notes. Then contact your insurance company to report the claim. They will explain what is covered and whether an AOB is needed.

If you live in Columbus, keep your shutoff valve location written down to minimize damage. After reporting, you can hire a local water damage pro for emergency extraction and drying. Decide whether to sign an AOB based on your comfort level. Check your policy and ask your insurer about any restrictions.