By Jim Saunders The News Service of Florida TALLAHASSEE — Pointing to a “crisis” in costly water-damage claims, the Citizens Property Insurance Board of Governors on Wednesday unanimously approved a proposed 6.8 percent statewide rate increase. The proposal would have varying effects for customers of the state-backed insurer, with some homeowners seeing premiums go up…Details
Assignment of Benefits (AOB) abuse is a fast-growing fraud scheme that is hurting Florida’s insurance consumers. While AOB is a long-established legal tool intended to allow vendors to receive prompt payment from insurers after doing emergency repair work in a home – without having to directly involve the homeowner – this process is being abused by a cottage industry of unscrupulous trial lawyers, water remediation firms and roofers. These bad actors are persuading homeowners to sign over the benefits of their insurance policies as a means for fraudulently inflating claims, filing thousands of lawsuits against insurers, and driving up attorney’s fees.