“He clothes his hands with lightning and commands it to strike its mark.” Job 36:32
The Florida Legislature recently passed a bill which, if signed by Governor DeSantis, will impact contractors who perform work under an Assignment of Benefits (“AOB”). An AOB is a document, signed by a homeowner/policyholder that allows a third party (ie. contractor, roofer, water mitigation company, plumber etc.) to “stand in the shoes” of the insured and seek direct payment from the insurance company. The limitations of the bill are so restrictive that it will very likely eliminate the use of AOBs in Florida altogether.
Here are some of the highlights of the bill, which will take effect July 1, 2019 if signed by the Governor.
– Within 14 days after the execution of the document for any reason,
– At least 30 days after the date work on the property is scheduled to begin if the contractor has not substantially performed the work, or
– At least 30 days after the execution of the AOB if the agreement does not contain a commencement date and the contractor has not begun substantial work on the property.