W W W . I N S U R A N C E - D I S P U T E - A T T O R N E Y. C O M
W H AT ?
• Assignment of Benefits: Legal document
entitling the restoration company to “stand in
the shoes” of the insured.
• Assigning the benefits of the insurance policy
for a specific claim
• Insurance Company has to deal with YOU as
opposed to the property owner for your bill.
• The effect of a valid assignment is to allow you
to receive all benefits and rights under the
insurance contract.
W H O CA N S I G N ?
• The policy holder or named insured
• Authorized Representative / Property manager
• Tenant with authorization from the insured
WHERE?
• Assignment of Benefits should be a separate
document and/or separate clause in contract
• State the name of the insurance company
• Signed by the named insured or an
authorized representative
W H E N CA N T H E A S S I G N M E N T B E
EXECUTED?
• Anytime within the Statute of Limitations
• Check your state for the Statute of Limitation
• Each state is different
• For Example: Florida has a 5 year Statute of
Limitations
WHY?
• Allows you to be paid directly from Insurance
Company as if you were the property owner/
policy holder
DIFFERENCE BETWEEN ASSIGNMENT OF
B E N E F I T S A N D D I R E C T I O N TO PAY:
Direction to Pay:
• Simply instructs the insurance company how to
pay
• Conveys no legal standing
• Can not bring suit under a direction to pay
• Bad faith, not an option
Assignment of Benefits:
• Conveys legal standing
• Conveys to bring suit/claim against insurance
company in dispute
• Allows the assignor to stand in the shoes of
insured
• Bad faith becomes an option
REQUIREMENTS FOR AN ASSIGNMENT
TO B E E F F E C T I V E :
• For an assignment to be effective, it must be )ͥ