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Assignment of Benefits

An Assignment of Benefits, or an AOB, is a document signed by a policyholder that allows a third party, such as a water extraction company, a roofer, or a plumber, to “stand in the shoes” of the insured and seek direct payment from the insurance company. It has become prevalent in water and roof claims across the state.

AOBs have been a part of Florida’s marketplace for more than a 100 years. Loopholes in the way it is being used in the marketplace are driving up costs for homeowners across the state due to unnecessary litigation associated with certain AOB claims. Per CFO Jeff Atwater, in 2006, there were 405 AOB lawsuits across all 67 counties in Florida and in 2016, that number had risen to 28,200.

Furthermore, the Office’s 2016 Data Call Study on this issue highlighted that claims with an AOB have a much higher severity than claims without one and the frequency and severity of water claims has risen since 2010. Frequency increased by 46% and severity by 28%.

Rising loss trends with respect to water claims are also having an impact on the profitability and rate need of many of the state’s domestic property insurance companies. In 2014, 63% of approved rate filings by the Office were for a decrease or no rate change at all. In 2016, 73% of approved filings were for rate increases.

With the increase in frequency and severity of claims for a policy only insuring water damages and absent any legislative reform, homeowners could begin to see 10% rate increases per year going forward.

This issue is a primary legislative priority of the Office and our number one objective has been, and will continue to be, holding consumers harmless. The Office is supportive of legislation addressing attorneys fees and providing for additional protections for consumers. To get involved and voice your support for legislative change, please contact your legislative representative.


Commissioner Altmaier presents to the Florida
Cabinet on AOBs - February 7, 2017


Watch the video
(starts at the 56:07 minute mark)

Commissioner Altmaier presents to the House
Insurance & Banking Subcommittee on AOBs -
March 14, 2017

Watch the video
(starts at the 3:47 minute mark)

Projected Homeowners Insurance (HO-3) Rate Increases: 2017 – 2022


  • To see how much homeowners insurance rates (HO-3) are projected to increase in your Florida County over the next five years without AOB reform, click here

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