SHOULD I SIGN AN AOB?
If you’re wanting to replace or repair your roof but your insurance company isn’t giving you enough money to cover it, you have the option of signing an AOB. Signing an AOB will allow us to use our industry experience to negotiate on your behalf. We’ve recovered thousands of extra dollars from insurance companies for hundreds of our clients. Call us to learn more.
What is Short Paid?
When your insurance company isn’t giving you enough money to cover your roof replacement or repair, it’s called short paying. For example, if your insurance company offered you $5000 after a $3000 deductible, but the roofing company quoted you over $9000, you’re being short paid.
All of that additional cost falls on the homeowner, even after paying the deductible. However, how much money your insurance company is willing to give can be renegotiated with an AOB.
What is an AOB?
An Assignment of Benefits (AOB) is a form that allows a third party to negotiate a claim amount on a policyholder’s behalf. The policyholder is assigning the insurance benefits to the contractor for work that is agreed upon by the insurance company. The policyholder should only have to pay their deductible and not a penny more. Therefore, the insurance proceeds go to the contractor for all work completed. The check is made out to the homeowner, contractor, and mortgage company so no one can run away with the check. This protects all parties involved.
Why Insurance Companies Don’t Like AOBs
If an insurance company is short paying you, it’s because they want to save money by withholding what you rightfully deserve. By framing an AOB as risky for policyholders, they deter their customers from signing one so the company won’t have to give out as much money. They rely on the lack of experience of their policyholders to pay as little money as possible, so they don’t want experienced contractors standing up for their customers.
The Benefits of Signing an AOB
Needing a roof repair or replacement is stressful enough, so letting your contractor deal with the insurance company relieves some of that for you. Also, contractors handle insurance companies all of the time, so they know what to do and how much to expect from any given situation. While a policyholder may just accept whatever number the insurance company offers them, a contractor knows when it is too low and is able to use their experience and expertise to negotiate a higher payout.
When Not to Sign an AOB
Signing an AOB has a great chance of saving you a lot of money, but you should do your research before signing it over to a contractor. Here are a few red flags that should make you rethink signing an AOB over to a company.
Bad Reviews or No Reviews
It’s always a good idea to check a company’s reviews online before you work with them. It’s even better to check before you sign an AOB to them. If they haven’t been trustworthy before in any way, steer clear.
Non-local or Out-of-state
Some companies will load up their trucks and come down to Florida post-hurricane season to take advantage of homeowners. Obviously, it’s not a good idea to sign an AOB to these types. Make sure that your contractor will always be nearby and easy-to-reach.
Require Money to be Paid Upfront
Contractors should be paid for a job well done. If they’re forcing payment up front, that’s a major red flag. You shouldn’t have to pay a dime until you’re happy with the work you’ve received.
Should You Sign Your AOB to Your Lawyer?
AOBs can also be signed over to lawyers, but it shouldn’t be your first move. Lawyers tend to take much longer to handle the negotiations. Also, if the contractor can’t negotiate a better deal and believes it to be a legal issue, they can always sign the AOB over to your lawyer to take over.
How We Can Help You Negotiate
If you’re being short paid by your insurance company, we can help. We’ve been servicing the Central Florida area for over a decade, where we’ve handled many AOB cases for our customers. We’ll work directly with your insurance company to ensure that you get the payout that you deserve. And we don’t take any money until the job is done.
To speak to our roofing and insurance experts about your specific circumstance, call us at (407) 449-7570 or fill out our online form.