assignment of benefits

Arrow down and many houses.
adragan / Adobe Stock

For nearly a decade, homeowners’ insurance companies have been asking the legislature to help them address fraud within the Assignment of Benefits process. They argued extreme costs of litigation was causing rates to rise for policy holders, and some companies refused to write any new policies at all. Now they have a fix thanks to a new policy change. And rates are expected to dip.

Man tightening a leaky pipe with a wrench.
Andrey Popov / Adobe Stock

Gov. Ron DeSantis signed a bill thats main goal is to stop bad actors in the homeowners insurance market. It would do so by changing what a contractor must do when a policy holder signs over their insurance benefits.

Homeowners Insurance Application on a table with a pen and book
designer491 / Adobe Stock

Contractors will now have to let insurance companies know when they’ve been assigned a policy holder's benefits. This change comes after Governor Ron DeSantis signed HB 7065, which makes changes to insurance agreements.

designer491 / Adobe Stock

Tuesday, lawmakers took a big step in addressing what property insurance companies have called fraud for nearly a decade. It’s called assignment of benefits. The fix makes several changes that lawmakers believe will help lower the cost of homeowner’s insurance.

House Bill 7065 makes changes to the state’s one-way attorney fees provision when dealing with lawsuits between contractors and property insurance companies.

Ross D. Franklin / AP Photo

During week six of the 2019 legislative session, the House passed a bill that would address an assignment of benefits issue that has plagued Florida’s insurance industry for years. But as a change was made that some say may cause more abuse of the system.

Lynne Sladky / AP Photo

Legislators want to close a loophole they say bad actors are exploiting, ultimately leading to insurance rates increasing across the state. A bill heading to the House floor would address the issue. Lawmakers and the Chief Financial Officer of Florida are both focused on stopping the so-called bad actors.

Clyde Robinson / Flickr

On average, Policyholders with the state-backed insurer Citizens Property Insurance could see an 8.2 percent rate hike. Blaise Gainey reports the Florida Office of Insurance Regulation will review the proposal Thursday.

After years of failure, Florida is trying again to address insurance reform this session. It’s targeting a practice known as assignment of benefits.

Monroe County Board of County Commissioners / facebook

Florida’s insurance industry has tried for years to reign in a practice known as assignment of benefits—where a property owner signs over payment of a claim directly to a contractor or service provider. The fight is back. This time, spearheaded by state Chief Financial Officer Jimmy Patronis.

Blaise Gainey

The Assignment of Benefits issue that has been plaguing the property insurance industry for a few years may finally be changed. During Wednesdays Associated Press Legislative Planning Session Chief Financial Officer Jimmy Patronis blamed bad actors who he says are twisting the law.

Sen. Anitere Flores (R-Miami) chairs the Senate Banking and Insurance committee.
Nick Evans

Florida senators are again tackling assignment of benefits.  The insurance provision has been a thorn in lawmakers’ sides for nearly five years.

National Institute for Occupational Safety and Health via wikimedia commons

Florida’s insurance regulator is readying another push for assignment of benefits reform in next year’s legislative session.  Similar measures have failed since 2013.

Florida Insurance Commissioner David Altmaier.
Florida Channel

Florida’s insurance officials are considering moves to rein in assignments after the Legislature again failed to take action.  The procedure allows service providers to work directly with an insurer, but some say they’re taking advantage of the system.

Sarah Mueller

Insurance companies in Florida and home contractors expect to battle over changes to assignment of benefits laws again this session. The rise of lawsuits where contractors are suing insurance companies to get paid and cover attorney fees has both sides arguing they are the only ones who are protecting the homeowner’s interests.

Florida Insurance Commissioner David Altmaier said insurance companies shouldn’t have to pay attorney fees when contractors sue them over property damage claims. He warned lawmakers this week that if the state doesn’t change its insurance rules, insurance companies will leave the market or raise rates.

Florida Insurance Commissioner David Altmaier.
Florida Channel

Rates in Florida’s property insurance market are in the midst of a broad upward shift.  State insurance officials are pointing to the rising cost of water damages.