Florida AOB (Assignment of Benefits) in Restoration: The 2026 Reality

Quick answer: Assignment of Benefits (AOB) is effectively prohibited in Florida for property insurance restoration claims. Under Senate Bill 2A, signed by Governor DeSantis in December 2022 and effective January 1, 2023, policyholders cannot assign any post-loss benefit under any residential property insurance policy or any commercial property insurance policy issued on or after that date. Any attempt to do so is void, invalid, and unenforceable. Pre-2023 policies remain a narrow exception, but that pool is shrinking fast as policies renew annually. If a contractor asks you to sign an AOB today for a Florida restoration claim, that is a major red flag.

What Florida Banned and When

Senate Bill 2A passed during the December 2022 Special Session and was signed by Governor DeSantis on December 16, 2022. The bill made wholesale changes to Florida’s property insurance market, including a complete ban on Assignment of Benefits for any new property insurance policy.

The operative language, codified at Florida Statute 627.7152(13), is direct: an assignment agreement entered into on or after January 1, 2023, that transfers any post-loss insurance benefit under a residential property insurance policy or under a commercial property insurance policy issued on or after January 1, 2023, is invalid and unenforceable.

What this means in practice: if your policy was issued or renewed on or after January 1, 2023 (which covers essentially every Florida property owner today), you cannot validly assign your insurance benefits to a restoration contractor, public adjuster, or any other third party for a property loss.

Why Florida Banned AOB

For roughly a decade leading up to the ban, AOB-driven litigation was widely cited as a major contributor to Florida’s property insurance crisis. Some restoration contractors used AOBs to inflate claim scopes, file lawsuits as a leverage tactic, and trigger one-way attorney fee shifting that made carriers settle inflated claims rather than litigate. Florida had a wildly disproportionate share of national property insurance lawsuits despite representing about 7 percent of homeowner claims.

SB 2A also eliminated one-way attorney fee shifting in property insurance lawsuits, which removed the underlying economic incentive that made AOB litigation profitable. Together, these reforms substantially changed the legal landscape for property insurance disputes in Florida.

The Narrow Pre-2023 Exception

If your policy was issued before January 1, 2023, and has not since renewed, an AOB may still be technically valid under the pre-reform statute (Section 627.7152). Those AOBs must still comply with all of the strict statutory requirements that existed before the ban, including written contracts, the 14-day cancellation right, itemized estimates, and pre-suit notice procedures.

In practical terms, this exception is largely theoretical. Florida property insurance policies are annual contracts, and the vast majority renewed at least once between January 2023 and 2026. Unless you have a multi-year specialty policy or you have not renewed in over three years, you almost certainly fall under the post-2023 ban.

What Restoration Contractors and Homeowners Do Instead

The disappearance of AOB has not stopped Florida restoration work. It has changed how invoicing and claim payments are coordinated.

Direction to Pay

A Direction to Pay (sometimes called a payment authorization or third-party payee designation) tells your insurance carrier to send the claim check directly to the contractor. The homeowner still owns all claim rights, still has all decision authority, and still settles the claim with the carrier. The contractor just receives the check directly when it issues.

Direction to Pay is permitted under Florida law and is the most common substitute for AOB. It accomplishes the practical goal (contractor gets paid directly) without transferring any of the rights the AOB ban prohibits.

Standard Contractor Invoicing

The traditional model: the contractor performs the work, issues an invoice to the homeowner, the homeowner submits to the insurance carrier, the carrier pays the homeowner, and the homeowner pays the contractor. This adds a payment-cycle step but keeps the homeowner in the loop on every transaction.

Pay-and-Reimburse

For smaller losses, some homeowners pay the contractor out of pocket and then submit the receipt to their carrier for reimbursement under the policy. This avoids any direct contractor-carrier relationship and gives the homeowner full control over the contractor relationship.

Red Flags After the Ban

Because AOB is effectively prohibited, certain contractor behaviors that were common before 2023 are now warning signs:

• Any contractor asking you to sign an AOB for a current Florida property insurance claim. Either they do not know the law, or they are hoping you do not.
• Pressure to sign paperwork on the spot. Legitimate Florida contractors will explain that there is no AOB to sign and walk you through the actual options (Direction to Pay or standard invoicing).
• Promises to “handle everything with the insurance company.” Without AOB, only a licensed public adjuster can represent you in claim negotiations. A restoration contractor handling claim negotiations as well is outside their lane.
• Vague paperwork. Any document a contractor asks you to sign should clearly state what it is (work authorization, Direction to Pay, contract, etc.). If it is unlabeled or uses outdated AOB language, do not sign.

What WrightWay Uses Today

We do not use AOB on any Florida restoration claim. Our standard process is a clear work authorization for the scope of work, paired with a Direction to Pay if the homeowner prefers the carrier check to come directly to us. Homeowners retain all claim rights, all decision authority, and the right to switch contractors at any point in the project.

If you have questions about how a Florida restoration claim works under current law, or you have already been pressured by another contractor to sign an AOB, call (941) 379-8669 or contact our claims coordination team.

Frequently Asked Questions

Is AOB really banned in Florida for property insurance?

Yes. Under Senate Bill 2A (December 2022), any assignment of post-loss benefits under a residential property insurance policy, or under a commercial property insurance policy issued on or after January 1, 2023, is void, invalid, and unenforceable.

What if my policy was issued before 2023?

A pre-2023 policy that has not since renewed may technically still permit AOB under the older Section 627.7152 statute, with all its strict requirements. In practice, almost all Florida policies have renewed at least once since 2023, so this exception applies to very few claims.

Can I still hire a contractor and have them deal with the insurance company?

Yes. You hire the contractor on a standard work authorization, and the contractor coordinates scope and pricing with the adjuster. The claim itself stays in your name. If you want the carrier check to go directly to the contractor, you can sign a Direction to Pay, which is not an AOB.

What is the difference between AOB and Direction to Pay?

AOB transfers the underlying claim rights from you to the contractor, including the right to sue, the right to settle, and the right to negotiate. Direction to Pay only tells the carrier where to mail the check. You keep all rights and all decision authority with a Direction to Pay. AOB is banned. Direction to Pay is allowed.

Can a public adjuster still represent me on a property insurance claim?

Yes. The AOB ban does not affect public adjusters. A licensed Florida public adjuster can represent you on the claim for a fee capped at 20 percent (or 10 percent during the first year of a Governor-declared emergency). See our public adjuster vs restoration company guide.

What if a contractor already had me sign an AOB after January 2023?

The assignment is void and unenforceable as a matter of Florida law. You retain all your claim rights as if the AOB had never been signed. If the contractor is using that void AOB to bill your carrier or to claim payments, contact your carrier, your agent, and consider consulting an attorney.