The debate over assignment of benefits practices in Florida has picked up new steam in the wake of Hurricane Michael, The News Service of Florida reports.
The practice involves home improvement contractors asking clients to sign insurance benefits over to them in exchange for their work. Signing over the benefits also gives the contractor the power to sue the insurance company, which the Florida Office of Insurance Regulation has said is increasing the cost of insurance in the state. Now, state-backed insurance company Citizens Property Insurance Corp. is telling consumers that signing over insurance benefits “can cause an increase in costs for which you could be left on the hook.”
A report earlier this year from the Consumer Protection Coalition found that assignment of benefits lawsuits grew from 405 in 2006 to more than 28,000 in 2016.