Reviewing Homeowners Insurance Policy

What is Assignment of Benefits?

An assignment of benefits (AOB) is a contract between you and a third party – typically a contractor, roofer or water mitigation company – giving them the right to deal directly with the insurance company and receive payment for all or part of your claim.  An AOB may sometimes be called a “Direction to Pay” or a “Letter of Protection.”  When you sign an AOB, you give up your right to manage all or part of your claim and ensure it is resolved to your complete satisfaction. 

Am I required to sign an AOB to have repairs completed?

No.  You can file a claim directly with your insurance company, which will allow you to maintain control of the rights and benefits provided by your policy in resolving the claim.

How it works?

After a loss, you may call a contractor, roofer, or other third party vendor to assist with emergency repairs.  The repair service provider may require you to sign the AOB agreement in order for them to get paid for their work, and so that you do not have to bear any cost or be involved in the claim process.

How do I know if I am signing an AOB?

Once a roofer, contractor, plumber, or other third party vendor has assessed the damage, they may present you with a document to sign prior to beginning any work. This document may sign over your insurance benefits to this third party and include an AOB. The AOB will contain language preventing you from communicating with the insurance company about your claim and giving the third party the ability to negotiate and endorse claim payments on your behalf or file suit against your insurance company, with or without your knowledge.

Can the Assignment of Benefits be cancelled?

Typically, consumers are unable to cancel because it is considered a legally binding contract. However, recently passed legislation allows a policyholder to cancel an AOB within 14 days of signing the agreement. This is an opportunity to decide if you want to allow someone else control of your claim or to retain your rights.

What precautionary measures should I take if I choose to retain my AOB contract?

  • Read your insurance policy and know what your responsibilities are after a loss.
  • Read the AOB carefully and understand how it impacts your claim.
  • Beware of language that allows all proceeds of the claim to be made to anyone other than you or your mortgage company.
  • Be cautious of an AOB with blank spaces contained in the document.

For policies that renew on or after January 1, 2023, AOB’s for services are prohibited pursuant to Florida Statute 627.7152.

Policyholders, vendors and legal representatives may submit AOB-related documents electronically or by mail.

To submit electronically, email to

To submit by regular mail or via overnight mail send to:

Heritage Property & Casualty Insurance
Attn. AOB Department
1401 N Westshore Blvd
Tampa, FL  33607