An article in the Insurance Journal, New Hampshire Body Shop Owner ‘Winging’ Own Case Beats State Farm in High Court, about an assignment of benefits (AOB) case caught my attention. State Farm’s attorneys lost to a non-lawyer in New Hampshire’s Supreme Court.1 The dollar dispute was overwhelmed by the practical implications of the case. The article noted in part:
Continue Reading Assignment of Benefits Post Loss—New Hampshire Looks To Policy Language
Restoration Association of Florida (RAF) and a restoration contractor did not let Florida Governor DeSantis’ ink dry before filing a lawsuit seeking to quash the new property insurance legislation. RAF recently filed a lawsuit against Florida’s Insurance Commissioner, as noted in last month’s post, Restoration Association Accuses Florida Insurance Commissioner of Unconstitutional Conduct.
Continue Reading Restoration Contractors Claim New Florida Property Insurance Laws Unconstitutional
The Florida legislature met in a special session this week to pass laws that will correct the latest insurance crisis in Florida. Insurance rates are skyrocketing, insurers are going broke, and Florida insurers are not fully paying claims—some are not doing so because they are going broke and robbing Peter to pay Paul.
Continue Reading New Florida Property Insurance Legislation
The world of managed repair is being argued about and fought over in Florida. While most property insurance policies have traditionally allowed insurance companies to elect the option to repair or replace damaged property, few insurance companies elected the option when it comes to real property damage. This is no longer the case in Florida.
Continue Reading Preferred Contractor vs. AOB Contractor—Who Wins When the Policy Allows Insurer Repair Option and Selection of Contractor?
Insurance restoration contractors play an important role in a policyholder’s, and often community’s, recovery following a disaster. Many restoration contractors have contracts calling for them to be paid what the insurance company agrees to pay on a claim. Those same contractors have Assignment of Benefit contracts (AOB’s) to ensure payment of claims monies for the repair work they do. This is a normal method of operation throughout many states after disasters happen. Policyholders want to immediately start with their repairs but have not finalized the amounts owed to do the repair work with their Insurance carriers.
Continue Reading Enforcement Action Shuts Down AOB’s and Contractor’s Negotiations For Repair Costs
All insureds should review their insurance policies before transferring any rights to third-parties under their property insurance. Some policies include clauses regarding this matter and limit the assignment or transfer of rights under a claim.
Continue Reading Do Third Parties have Any Rights in an Insurance Claim?
A recent federal appellate court case seems to have closed any hope on assignment of benefits in Ohio.1 The case involved a post-loss assignment of insurance claims benefits to a body shop to do repairs. The holding upheld anti-assignment language in the policy:
Continue Reading Assignment of Benefits May Be Dead in Ohio
An open insurance claim, in most cases, does not inhibit your ability to sell the property. There may be a number of reasons why a homeowner wishes to sell their home while the insurance claim is still pending. When doing so, here are some things to consider.
Continue Reading Things To Consider When Selling Property With An Open Insurance Claim
A second court of appeals in Florida has upheld a limitation in a policy that prevents assignments of property insurance claim benefits only if all policyholders and the mortgagee agree to the assignment.
Continue Reading Assignment of Benefits Valid Only If All Policyholders and the Mortgagee Agree
When properly documented and planned, the sale of a damaged property does not create an opening for the insurance company to escape liability from its insurance obligations. When selling your property during a pending insurance claim, policyholders can assign the claim to a new buyer or retain their right to receive insurance benefits under the policy.
Continue Reading Who Collects the Insurance Claim Proceeds If the Damaged Property Is Sold?