HANDLING ASSIGNMENT OF BENEFIT ("AOB") CLAIMS IN THE WAKE OF HURRICANES IRMA AND HARVEY

The classic example of an AOB claim is the following: an insured suffers property damage and hires a repair contractor to repair that damage.  The repair contractor requires the insured to execute a written document, usually entitled “Assignment of Insurance Benefits”, which says something to the effect of “for and in consideration of the contractor’s agreement to protect the property from further damage and/or make repairs, the insured assigns his/her/its insurance benefits to the contractor.”  The contractor thereafter makes a claim directly to the insurer using the AOB.