FOREWARNING: This blog is not intended to scare anyone but rather explain the drawbacks to a work authorization or assignment of benefits. This blog should not be taken as legal or financial advice either.
As a homeowner, you may have heard of an assignment of benefits (AOB) or work authorization for storm damage to your roof. These documents are typically presented to homeowners by roofing contractors who offer to repair or replace damaged roofs. While it may seem like a convenient solution to your storm damage, signing these documents may have serious consequences. The assignment of benefits has almost been 100% eliminated in the state of Florida. However, it has been replaced by the work authorization form. Same bird, different feathers.
Here are a few reasons why I would not sign an assignment of benefits or work authorization for storm damage to my roof:
Loss of Control: By signing an assignment of benefits or work authorization, you are essentially transferring your rights to negotiate with your insurance company to the roofing contractor. This means that the contractor has the authority to file a claim, negotiate with the insurance company, and ultimately make decisions about repairs or replacements without your input. The check you receive from the insurance company will have both the roofing company and your name on the check. You will endorse the check and hand it over to the roofing company no matter the amount.
Fraud: Unfortunately, there are unscrupulous contractors who take advantage of homeowners by convincing them to sign these documents and then inflating the cost of repairs or replacements. This is known as insurance fraud and is illegal. You could be held liable for any fraudulent activity committed by the contractor. Example: Your roof costs $15k to replace if you pay with cash but the roofing company charges $20k and keeps everything.
Higher Costs: When a contractor has the authority to negotiate with your insurance company, they may be more likely to inflate the cost of repairs or replacements. This could lead to higher insurance premiums or out-of-pocket expenses for you. Please reference previous example.
Limited Contractor Options: If you sign an assignment of benefits, you may be limited to working with the contractor who presented you with the document. This means that you may not have the opportunity to shop around for other contractors who could offer a better deal or better quality of work. Whichever roofing company you sign with, you have to use.
Difficulty Cancelling: Once you sign an assignment of benefits or work authorization, it can be difficult to cancel the agreement. This could leave you stuck with a contractor who is not living up to their promises or who is charging you more than you expected. Unless you wanna pay for an attorney.... you have to use the roofing company named on the check.
If you are in a financial bind, a work authorization or AOB may be your only option to avoid any money out of pocket. Also be wary of company saying they will cover your storm deductible. That's insurance fraud. You always have to pay your deductible. Why would a roofing company pay you money to do your roof? Because they are over charging the insurance company and absorbing your deductible.
If you have extensive storm damage, hire a public adjuster. There are several reputable public adjuster fims in Brevard, Indian River and St. Lucie counties. We love sending our friends to Ask an Adjuster located in Melbourne Florida. https://askanadjuster.com/
In conclusion, it is important to be cautious when presented with an assignment of benefits or work authorization for storm damage to your roof. Instead of signing these documents, it is recommended that you work directly with your insurance company and choose a reputable contractor who is licensed and insured like Heart Roofing LLC. By doing so, you can protect yourself from fraud, ensure that you have control over the repair process, and potentially save money on repairs or replacements.
If you are concerned you have storm damage to your roof please call us at 321-499-3012 or visit our website at www.heartroofingflorida.com for more info. Heart Roofing LLC will hold the highest integrity when dealing with your roofing repair or roof replacement.