Assignment of Benefits (AOB) in Florida Homeowners Insurance Explained

Updated October 2026

An Assignment of Benefits (AOB) is an agreement that transfers specified insurance claim benefits to another party, often a contractor performing repairs. Florida substantially changed the rules governing post-loss assignments. For property policies issued on or after January 1, 2023, Florida law generally makes attempts to assign post-loss property insurance benefits void, subject to statutory exceptions. The policy issue date and type of agreement matter.

Florida Assignment of Benefits Rules for Homeowners Claims

Under Florida Statutes section 627.7152, qualifying assignments under certain policies issued before January 1, 2023 were subject to detailed requirements. For policies issued on or after that date, the statutory prohibition applies to residential property policies and specified commercial property policies. Some arrangements, including certain transfers to a subsequent property purchaser and qualifying powers of attorney, are treated separately under the statute. These are legal distinctions, not permission for a repair company to take control of every claim.

AOB Versus a Contractor Work Authorization

A work authorization typically gives a contractor permission to inspect, protect, or repair a home. It does not necessarily transfer the homeowner’s insurance benefits. A direction to pay, an authorization to communicate with an insurer, and a full assignment of claim benefits can have different legal effects. Read the actual wording before signing, especially any provision about payment rights, attorney fees, cancellation, or control of a claim.

What to Check Before Signing After Storm Damage

Confirm the insurance policy’s issue date and the agreement’s purpose.
Request a written scope of work, pricing terms, and cancellation provisions.
Keep copies of estimates, photographs, invoices, and communications with the insurer.
Ask the carrier or a qualified Florida attorney about an agreement you do not understand.

For an overview of property coverage, see Personal HOI. Homeowners can authorize legitimate repairs without assuming that every contractor document is an enforceable AOB. Florida Statutes section 627.7152 controls the relevant statutory requirements.