jump to main menu jump to subject menu jump to content jump to footer

Insurance Consumer Advocate

Sha'Ron James

Contact Us
Mailing: 200 East Gaines St.
Tallahassee, FL 32399-0308

For Consumer Assistance:
Contact the Division of
Consumer Services within the
Department of Financial Services

Online at
Consumer Services
Toll-free in Florida
Out of State
(850) 413-3089
(850) 413-3033

Public Records Requests

Follow the ICA on Twitter

design placeholder only

Action 9: Home repair contracts spin out of control


Date: October 24, 2017
Source: WFTV 9 ABC
Author:  Todd Ulrich and Gerry Mendiburt


ORLANDO, Fla. - Action 9 exposed how a small water leak can trigger a monster repair bill if consumers sign the wrong contract. A local woman told Action 9's Todd Ulrich a restoration company hijacked her insurance claim, and she was forced out of her home for months.

“What has this been like for you?” asked Ulrich.

“Pure hell. It's killing me,” Darlene Masturzosaid.

Masturzo discovered a hot water tank leak four months ago. A friend recommended a restoration company to fix it. She said Pro Choice Remediation told her to sign an assignment of benefits or AOB.

“They said, 'Yes don't worry. We handle everything. We work with the insurance company," Masturzo said.

The contract gave Pro Choice Remediation complete control of the claim. The company removed walls, cabinets and flooring and hired a mold tester. It hired another company to store Masturzo'sfurniture and clothes.

Pro Choice and its vendors billed her insurance company more than $30,000 for a water leak in a 500-square-foot manufactured home.

“Do you think they ran up the bill?” asked Ulrich.

“Oh, absolutely, they ran up the bill,” said Masturzo.

After spending all that money, nothing has been rebuilt and the owner wasforced out of her house for months.

Masturzo still has to hire a contractor to rebuild herkitchen for another $10,000, but she vows: no AOB this time.

“I hate assignment of benefits. It should be outlawed," Masturzo said.

The business address for Pro Choice Remediation is a home in east Orange County. No one answered the door when Ulrich tried to contactcompany president Mel Sanchez. Later, on the phone, Sanchez told Ulrich the mold testing showed real risks and all the work the company had ordered was necessary.

But AOB critics, such asthe Florida Chamber of Commerce, saidsome contractors use AOB contracts to drive up costs without obtaining estimates and then hire attorneys to collect.

“They're billing insurance companies for outrageous claims, some of which were never performed and I think a day ofreckoning is coming,” said Mark Wilson, of the Florida Chamber of Commerce.

“They took me for a ride, and I'm upset about it,” Masturzo said.

State regulators said some insurance premium increases are blamed on AOB-inflated claims and they want legislators to attempt reforms again next year.

Opponents say AOB contracts give consumers better coverage results.