AOB Abuse Leads to Increases in Premiums

Assignment of Benefits (AOB) fraud is a fast-growing problem for Florida homeowners. Unfortunately, as the result of this problem, it has lead to an increase in homeowners’ insurance premiums for a vast majority of carriers doing business in our State.

Most commonly, AOB fraud occurs during an emergency, such as a plumbing or roof leak. When homeowners sign an AOB contract, it puts a third party in direct control, and claims are inflated with unnecessary costs and fees. It doesn’t end there – these costs are then passed on to policyholders when insurance companies calculate and adjust their rates.

Large areas of the state, particularly the tri-county area of Southeast Florida, have already been hit with double-digit property insurance rate hikes, with more increases on the horizon if something isn’t done. State-run Citizens Property Insurance Corp. has calculated what will happen if lawmakers do not fix the problem.

In Palm Beach, for example, coverage for a residential structure with a value of $155,000 would rise from $2,210 this year to $3,559 in 2022. In Broward, the premium would jump from $2,390 to $3,850, and in Miami-Dade the premium would increase from $2,926 to $4,712. Premiums for more expensive homes would go up even higher. (USA Today)

The Assignment of Benefits process was envisioned as a tool to aid homeowners with disputed insurance claims. Unfortunately, this process has been taken advantage of by dishonest contractors and attorneys who are benefiting only themselves at Florida homeowners’ expense.

Read more on How to Identify and Avoid AOB Fraud and learn how you can fight back against this type of abuse in the State of Florida. While we understand it is tempting to begin repairs to your home as soon as possible, please do not sign any forms before speaking with Florida Peninsula or your agent. To report your claim, please call 877-994-8368.

If you suspect fraud, please report it immediately to the Department Financial Services at (866) 923-2920. To report suspected fraud on a Florida Peninsula policy, call 866-923-5236 or email

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