Posted by Most Insurance on June 18, 2015 No responses

What is assignment of benefits - Tampa

Here’s an important update on fraudulent claims activity happening in your area. We’ve noticed a growing trend of insurance claims for “hail damage”. Roofing companies are targeting neighborhoods with older roofs saying that a hail storm had come through, some referring to hail storms that happened years ago. They’re going door-to-door stating that residents have hail damage to their roof and that their roof needs to be replaced, and that they would handle everything for you, even deal with your insurance company.

New roof, minimal out-of-pocket costs, no dealing with insurance companies. Sounds too good to be true, right?

That’s because it is. In most cases like these, an “Assignment of Benefits” is involved.

What is Assignment of Benefits?

When you sign a contract that includes an Assignment of Benefits, you’re essentially transferring and assigning any and all insurance rights, benefits, and causes of action under your property insurance policy to the contractor. Assignment of Benefits is not exclusive to hail claims, but that’s what we’ve seen the most and we urge you to be informed. Always talk with your insurance agent or company before signing a contract that includes an “Assignment of Benefits”.

When filing a Hail Claim, the hail damage must result in 25% or more of the damage to your roof for the claim to even be a valid loss due to hail. Anything less will most likely result in a declination by your carrier, but even if it’s denied and your insurance company deems that your roof needs to be replaced due to age and you’ve signed an Assignment of Benefits, the roofing company calls all the shots and in the end gets the job replacing your roof, regardless of whether or not you want them working on your home or not.

If a roofing company knocks on your door and claims that you have hail damage and that your roof needs to be replaced, here are a few things to look for on your own before you take any further action:

  • Cars: Are/were any cars damaged as a result of the hail storm?
  • Gutters: Look for dents in the rain gutters around your home.
  • Screened Patios: Look for holes in your screen and dents in the metal supports.
  • Mailboxes: Look for dents on your mailbox; check your neighbor’s mailboxes too.
  • AC Units: Check for multiple dents to your AC enclosure.
  • Leaks: Are there any leaks in the ceiling throughout your home or in your garage?

Your protection is our priority. Want you to know what you’re signing before it’s too late. We’d love to talk with you before you sign any agreements, especially in regards to hail claims.

Contact your Tampa insurance company – Most Insurance for a free insurance quote!

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