Citizens: “Be on the Lookout for AOB Scams in Florida Related to Hurricane Matthew”
Citizens Property Insurance Corp. is urging its policyholders to call Citizens first to report losses following Hurricane Matthew in order to protect themselves from assignment of benefit (AOB) scams, according to a statement from the company. In its warning to its customers, Citizens said, “Unfortunately, unscrupulous contractors and repair companies thrive in the frenzied days following any storm. Policyholders must be wary of unlicensed contractors or deals that sound too good to be true.”
Now, we’ve detailed the unlawfulness of AOB scams on the BBIMI blog before, so please re-read that blog post to see what tips and tricks you can utilize to spot an AOB scam or avoid it all together. With that being said, DO NOT SIGN ANYTHING WITHOUT SPEAKING TO YOUR INSURANCE AGENT OR PROVIDER FIRST. You may be signing away your rights and be left with unfinished repairs or forced to pay a contractor for repairs not covered by your policy. The policy may also place a limit on emergency repairs until Citizens is notified to inspect damage before permanent repairs are made.
Many in the industry are concerned that the AOB issue, which has been called an “insurance crisis” by Citizens, will worsen after this storm. The bulk of claims that do come in will likely be residential, and the carriers and regulators are “frightfully concerned” of how the AOB problem could spiral after a storm like Matthew.
AOB’s are most likely to be offered to policyholders when a contractor is making emergency repairs or when companies come to the door soliciting business. Citizens said policyholders may be told repairs cannot be completed until they have signed an AOB contract, which allows the company to submit the claim and deal directly with Citizens.
BB Insurance Marketing is a full-service insurance agency located in South Florida that specializes in business, personal and benefits insurance. Childcare, gas stations, pest control and restaurants are just a few of the niche markets we work in. BBIMI’s insurance expertise extends all across the state, so we’ve got you covered with a quality policy you can depend on!