Are you familiar with Private Adjusters?
A PA is a private adjuster that you are hiring for a fee, which is often times a percentage of the total settlement. Unfortunately it’s become common practice for PA’s to inflate the claim amount in order to increase their fee, which can cause significant delays in the processing and closing of the claim. Your insurance company however will promptly assign an Adjuster to your claim, at no cost to you.
What about an Assignment of Benefits (AOB)?
An (AOB) is a contract that once signed, transfers full control of the claim from YOU the customer. To the contractor - allowing the contractor to collect payment directly from your insurance company. This gives the contractor the latitude to perform work before the insurance company has an opportunity to appraise the damage which could lead to disagreements about the settlement amount. If the insurance company determines that the claim settlement amount is less than the amount of the contractor’s bill, you as the customer could be on the hook to pay the difference or face the possibility of foreclosing on their home due to a contractor lien. Unfortunately there are contractors out there that will also exaggerate the amount of the damage for a bigger pay day. And this could leave you in a very compromised position.