Anyone familiar with an A.O.B.? You need to be!
Posted: Mon Mar 11, 2019 8:51 am
This is a little long read but eye opening.
I had a problem with some copper pipes in my walls leaking over the years, in my bathroom. I noticed it when I tried to retile my shower stall. When I removed the glass enclosure, tiles fell of the wall only being supported by the glass frame work. I dug a little deeper and noticed the walls/framework was rotten/destroyed beyond repair. My floors are poured concrete and the surrounding concrete was saturated. I called a plumber who told me to get a dry out/restoration company to come in and assist me.Well one did. It is a somewhat local company who is based in Martin County and works in Martin,Palm Beach, Saint Lucie and I think Indian River. They gave me a contract with a rough estimate-understandable, as there was no way of knowing what was damaged until they were able to check it out. Anyway, they came and said to file a claim with my insurance company, as did the plumber, as the repairs were going to be more costly and than I originally figured due to mold, surrounding walls/Dura-Rock destroyed, vanities rotten, frame work, etc..
So, I signed the contract as the price seemed right and reasonable. I called my home insurance company right after to get a claim started, who told me not to use this company as they had an A.O.B.-Assignment Of Benefits clause. I had no idea what that was and my agent told me it basically gives the company you hire the right to sue for you in court against your homeowner's policy/company. I have come to find out that an AOB was started a long time ago as a way for a homeowner to get work done on their homes from insurance companies not wanting to pay out for repairs. Sounds like a good deal for the homeowner, when in times past insurance companies wouldn't pay out for repairs.
The problem now is AOBs are now used by the company you hire to extort your insurance company and even you. Another words, a business with an AOB can and WILL increase the costs of the repairs- even beyond the estimate/quote you were given (usually a lot higher) and sue your insurance company for the work done. They will do this as you signed the contract and they will act as the homeowner. They can/will take your insurance company to court with or without your knowledge and try to get all they can and more for their "work" done. This can leave the homeowner on the hook as well, depending on what the insurance will reasonably pay to the company, so that you (the homeowner), is then responsible for whatever costs the insurance did not pay. Then, your insurance company can and usually will drop you afterwards.
I fired the company and prevented them from doing any more work,( as you have a 3 day period in which you can fire/cancel a contract in Florida). I dodged a bullet and am glad I did. I do not work for an insurance company and had no clue what could have happened but from what I have read/learned, it is bad for the homeowner. This company also sent me another estimate just drying out the area with a cash price (if I chose to go that route), in an email. The price was still high and I asked if that is the same amount they would bill the insurance company. This is what they stated exactly-"If you choose to bill through YOUR INSURANCE we will give you 30% off the total bill". I read that statement a few times just to be sure I understood what it said and it was - insurance fraud. I gave a copy of the email to my insurance claim adjuster to use whatever way they could against that company.
I am only writing this to help others out when you have to deal with companies coming in to assist you in getting your house back in order. It was an eye opening experience for me.
I had a problem with some copper pipes in my walls leaking over the years, in my bathroom. I noticed it when I tried to retile my shower stall. When I removed the glass enclosure, tiles fell of the wall only being supported by the glass frame work. I dug a little deeper and noticed the walls/framework was rotten/destroyed beyond repair. My floors are poured concrete and the surrounding concrete was saturated. I called a plumber who told me to get a dry out/restoration company to come in and assist me.Well one did. It is a somewhat local company who is based in Martin County and works in Martin,Palm Beach, Saint Lucie and I think Indian River. They gave me a contract with a rough estimate-understandable, as there was no way of knowing what was damaged until they were able to check it out. Anyway, they came and said to file a claim with my insurance company, as did the plumber, as the repairs were going to be more costly and than I originally figured due to mold, surrounding walls/Dura-Rock destroyed, vanities rotten, frame work, etc..
So, I signed the contract as the price seemed right and reasonable. I called my home insurance company right after to get a claim started, who told me not to use this company as they had an A.O.B.-Assignment Of Benefits clause. I had no idea what that was and my agent told me it basically gives the company you hire the right to sue for you in court against your homeowner's policy/company. I have come to find out that an AOB was started a long time ago as a way for a homeowner to get work done on their homes from insurance companies not wanting to pay out for repairs. Sounds like a good deal for the homeowner, when in times past insurance companies wouldn't pay out for repairs.
The problem now is AOBs are now used by the company you hire to extort your insurance company and even you. Another words, a business with an AOB can and WILL increase the costs of the repairs- even beyond the estimate/quote you were given (usually a lot higher) and sue your insurance company for the work done. They will do this as you signed the contract and they will act as the homeowner. They can/will take your insurance company to court with or without your knowledge and try to get all they can and more for their "work" done. This can leave the homeowner on the hook as well, depending on what the insurance will reasonably pay to the company, so that you (the homeowner), is then responsible for whatever costs the insurance did not pay. Then, your insurance company can and usually will drop you afterwards.
I fired the company and prevented them from doing any more work,( as you have a 3 day period in which you can fire/cancel a contract in Florida). I dodged a bullet and am glad I did. I do not work for an insurance company and had no clue what could have happened but from what I have read/learned, it is bad for the homeowner. This company also sent me another estimate just drying out the area with a cash price (if I chose to go that route), in an email. The price was still high and I asked if that is the same amount they would bill the insurance company. This is what they stated exactly-"If you choose to bill through YOUR INSURANCE we will give you 30% off the total bill". I read that statement a few times just to be sure I understood what it said and it was - insurance fraud. I gave a copy of the email to my insurance claim adjuster to use whatever way they could against that company.
I am only writing this to help others out when you have to deal with companies coming in to assist you in getting your house back in order. It was an eye opening experience for me.
