10 Myths & Facts of An Assignment of Benefits
MYTH 1: Assignments of property insurance benefits are a recent phenomenon
FACT: Assignments of post-loss benefit payments have been recognized by Florida law for over 100 Years
MYTH 2: Assignment Of Benefits give contractors special rights the policyholder would not have
FACT: Assignment of Benefits does not give contractor’s additional rights
MYTH 3: Assignment of benefits allow contractors to inflate prices
FACT: Assignment of benefits have no impact on a contractors ability to inflate pricing
MYTH 4: Assignment of Benefits allow contractors to file lawsuits within days of claim being filed
FACT: Assignment of Benefits does not override insurance policy provisions allowing certain time periods for coverage determinations
MYTH 5: Assignment of Benefits are not fair because they violate “Non-Assignment” clauses in insurance contracts
FACT: Assignment of Benefits only assign the right to receive payment for services performed, not the insurance policy itself
MYTH 6: Assignment of Benefits let contractors circumvent policy obligations
FACT: Even with an assignment, all policy obligations remain with the homeowner and will be enforced by Florida courts
MYTH 7: Contractors who take Assignment of Benefits are claiming ownership of the entire claim, not just payment for services they performed!
FACT: Assignment of Benefits only transfers the right to receive payment for contracted services, not an entire claim.
MYTH 8: Contractors who receive Assignment of Benefits violate Florida’s “Public Adjusting” Statue
FACT: An Assignment of Benefits is legally distinct from Public Adjusting
MYTH 9: An Assignment of Benefits violates Florida Statue 627.405 because contractors don’t have an “insurable interest” in the property
FACT: Florida Statue 627.405 only requires that the policyholder have an insurable interest at the time of the loss
MYTH 10: An Assignment of Benefits violates Florida’s “Lien Laws” pursuant to Florida Statue 713.32
FACT: Florida Statue 713.32 only deals with applications to place a lien on the property; an Assignment of Benefits is not lien or an application for a lien.
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