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  • Writer's pictureKristen Shields

Assignment of Benefits (AOB)

Hurricane Ida is bringing destruction and a call for help and rebuilding in the near future. Many of you likely will leave your home state to travel to affected areas. In addition to your safety, be careful of breaking contractor's licensing laws when informally offering (not just bidding) to perform work outside of your usual territory. Sometimes in times of crisis when contractors' helping hands are needed, state governments can issue orders allowing for a temporary license of sorts for disaster relief-based construction, BUT it still requires certain paperwork be submitted to the state in order to be approved. For example, this occurred in Spring of 2020 when tornadoes wreaked havoc in Middle Tennessee.

If you're mobilizing to perform work, ensure you have the right forms in your arsenal, including an Assignment of Benefits (AOB) specific to the state where you're headed. It is not one-size-fits-all. If you have an AOB you use in one state, don't assume you can use it in another.

What's an AOB? Simply stated, it's a document you present to homeowners, for example, that upon signature, gives you certain rights to act on their behalf regarding their insurance. Beware, though, that certain language must be included in your AOB.

One misconception is that certain states won't acknowledge an AOB. This isn't necessarily true. There's a difference between an AOB not being allowed and it being enforceable in the state or under the consumer's policy. At the end of the day, the policy will dictate these things, first and foremost.

Need an AOB form? Contact Us today to add this tool to your toolbox.

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