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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. According to the Department of Financial Services, there were 405 AOB lawsuits across all 67 Florida counties in 2006, and that number had risen to 28,200 by 2016.

Furthermore, the Office’s two data call reports on this issue highlighted that claims with an AOB have a much higher severity than claims without one (nearly 85%) and the frequency and severity of water claims has progressively risen since 2010. In the 2017 report, the total combined impact of changes in frequency and severity reflect an average annual increase of 42.1% in water losses, which is nearly triple the 14.2% average annual increase shown in the 2016 report.

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.

As a result, these escalating trends and the rising use of AOBs associated with a water loss are causing tangible consumer harm. Absent an intervening change in the way AOBs are being utilized today, it is anticipated that these trends will continue to deteriorate and may cause availability issues as insurance companies struggle to control rising costs, resulting in higher insurance premiums for all Florida homeowners.

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

Post-Loss AOB Fact Sheet


  • Fact Sheet
  • Consumer Alert: Know What You Are Signing for Repairs After Hurricane Irma -- 9/18/2017

Office Presentations:


  • November 14, 2017 - "Assignment of Benefits (AOB)" by Commissioner Altmaier to the House Judiciary Committee (video) (begins at 44:54)
  • October 24, 2017 - "Assignment of Benefits (AOB)" by Commissioner Altmaier to the Senate Banking & Insurance Committee (video)
  • August 16, 2017 - "Assignment of Benefits (AOB)" by Commissioner Altmaier to the Florida Cabinet (video) (begins at 1:39:31)
  • April 19, 2017 – “Assignment of Benefits (AOB)" by Commissioner Altmaier to the House Commerce Committee (video)
  • April 3, 2017 – “Assignment of Benefits (AOB)" by Commissioner Altmaier to the Senate Banking & Insurance Committee (video)
  • February 7, 2017 – “The Florida Property Insurance Market and Assignment of Benefits (AOB)” Cabinet Presentation (video)
  • January 10, 2017 – “The Florida Property Insurance Market” by Commissioner Altmaier to the Senate Banking & Insurance Committee (video)
  • December 6, 2016 – Florida Cabinet presentation by Commissioner Altmaier presentation (video)
  • September 20, 2016 – Florida Cabinet presentation by Commissioner Altmaier presentation (video)
  • June 14, 2016 – DFS/Insurance Consumer Advocate’s Office “Troubled Waters: Water Loss Crisis Forum” (Part 1 video, Part 2 video)

Other Resources:


Related News Articles:


Please note - some of these resources were not developed by the Office, and some links will direct you to websites not maintained by the Office.