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
1-877-MY-FL-CFO
(1-877-693-5236)
Out of State
(850) 413-3089
Español
(850) 413-3033

Public Records Requests



Follow the ICA on Twitter


design placeholder only

Senate Committee Passess Assignment-of-Benefits Reform in Water Damage Insurance Claims

News Article

March 1, 2016

Florida Politics

A Senate committee passed a bill seeking to reform assignment-of-benefits for water damage claims on property insurance rates across the state.

LobbyTools reports that SB 1248, fromMiami Republican Sen. Miguel Diaz de la Portilla, takes several steps to reduce abuse of AOB agreements, which allow third parties to claim the insurance benefits resulting from loss, rather than receiving an upfront payment from homeowners.

In part, the bill offers stronger prohibitions against water remediation businesses, contractors or subcontractors who act as insurance adjusters. It bans them from either offering or receiving referral fees of more than $25.

Also, the measure provides new consumer protections, such as requiring contractors and remediation businesses to adhere to a printed scope of work and materials.

According to LobbyTools, De la Portilla offered an amendment specifically protecting homeowner’s properties from liens placed on them by contractors with an AOB agreement.

“If a contractor takes an assignment of benefit, the contractor’s only recourse is against an insurance company,” De la Portilla told the committee.

Among other changes include allowing contractors to offer revisions to the original scope of work, as well as clarifying that the regulations apply only to homeowner policies.

Port Orange Republican Sen. Dorothy Hukill, the sponsor of a failed bill reforming AOB agreements, voted for the bill despite her belief that it only “nibbled at the edges” of the problem.

AOB fraud is “spreading across the state,” Hukill told the committee, “and we need to make sure it doesn’t become an absolute crisis.”