Florida homeowners are paying more in insurance premiums because of a scheme that abuses the “assignment of benefits” (AOB) law. In recent years, dishonest trial lawyers and contractors — generally water remediation firms, roofing contractors and plumbers — have come up with a new scheme involving AOBs and bilking the system.
HB 669 and SB 1064 attack these insurance-claims abuses, in which these schemes, AOBs are being used to increase claims and file costly lawsuits against insurers costing Florida homeowners. Since 2005, the last year a major hurricane struck Florida AOB lawsuits have been increasing in number. Back in 2005 and 2006 there were only 9,424 AOB lawsuits, compared to 92,521 in the last two years. That’s a 1,000 percent growth and it is costing Florida homeowners.
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