Florida Policyholder Guide

Florida AOB vs. Public Adjuster

An assignment of benefits hands your claim to a contractor; a public adjuster represents you. Florida’s 2019 and 2022 reforms changed what you can — and cannot — assign.

By Dependable Claims Specialists Public Adjusters · Florida

Quick Answer

Signing an assignment of benefits (AOB) transfers your post-loss policy benefits to a third party — usually a contractor or restoration vendor — under Fla. Stat. §627.7152. The 2022 SB 2-A reform now makes such assignments on residential policies (and commercial policies issued on or after January 1, 2023) void and unenforceable under §627.7152(13). Hiring a licensed public adjuster under Fla. Stat. §626.854 is different: nothing is assigned, you keep your claim, the insurer pays you, and the adjuster’s fee is capped (20% standard, 10% in a declared-emergency year). DCS is a public adjusting firm, not a law firm — how the statute applies to your policy is a legal question for a licensed attorney.

AOB vs. Public Adjuster: Side by Side

	Assignment of Benefits (AOB)	Licensed Public Adjuster
What you sign over	Your post-loss policy benefits are assigned/transferred to a contractor or vendor	Nothing is assigned — you keep your claim; the PA simply represents you
Who the insurer pays	The assignee (the third party), who pursues the carrier directly	You, the policyholder
Governing statute	Fla. Stat. §627.7152 / §627.7153	Fla. Stat. §626.854
Fee / cost cap	No statutory fee cap on the third party’s charges	20% standard, or 10% in a Governor-declared emergency year (§626.854(11))
Current Florida status	Prohibited for residential policies, and commercial policies issued on/after Jan 1, 2023 — attempted assignment is void (§627.7152(13))	Permitted — licensed public adjusters represent policyholders statewide
Who represents you	The assignee acts in its own interest once benefits are assigned	The public adjuster represents the policyholder
Litigation	Handled by the assignee’s counsel after benefits are assigned	A PA does not litigate; coverage suits and bad faith are attorney work

Statutory citations: Fla. Stat. §627.7152 and §627.7153 (assignment of benefits); Fla. Stat. §626.854 (public adjusters and the fee cap). Source: The Florida Senate, flsenate.gov.

What Changed Under Florida’s AOB Reforms

2019 Reform (HB 7065)

Created §627.7152, defining the AOB framework for property claims
Required AOB agreements to be in writing with a 14-day right to rescind
Required the assignee to deliver a copy to the insurer within 3 business days and to indemnify the policyholder
Added §627.7153, letting insurers offer assignment-restricting policies only alongside an unrestricted option

2022 Reform (SB 2-A)

§627.7152(13) prohibits assigning post-loss benefits under residential property policies
Same prohibition applies to commercial property policies issued on or after January 1, 2023
Any attempt to assign such benefits is void, invalid, and unenforceable
Hiring a licensed public adjuster under §626.854 is not an assignment and remains available

DCS is a public adjusting firm, not a law firm. We inspect, document, value, and negotiate Florida property claims on your behalf under §626.854. We do not draft or interpret assignment agreements, and we do not provide legal advice or pursue coverage litigation or bad-faith remedies — that is the work of a licensed attorney. Whether a particular agreement is a prohibited assignment under §627.7152 is a legal question for counsel.

Public Adjuster Fee Cap (§626.854(11))

20% of the claim payment is the standard cap
10% for a claim based on a Governor-declared state of emergency, made within one year of the declaration
Supplemental and reopened claims are also capped at 20%
These fees are exclusive of any attorney fees

Why It Matters

When you hire a public adjuster, your representative’s compensation is fixed by statute and you remain the policyholder — the insurer pays you. An assignment of benefits, governed by §627.7152, carries no equivalent statutory cap on the third party’s charges, and the assignee — not you — controls the claim once benefits are assigned. Because Florida now voids most AOBs, many policyholders choose to keep their claim and use a licensed public adjuster instead.

What an Assignment of Benefits Actually Is

An assignment of benefits — almost always shortened to AOB — is a legal document. When you sign one, you transfer some or all of the post-loss benefits of your property insurance policy to a third party. In Florida that has typically been a contractor, a restoration company, or a water-mitigation firm that shows up after a leak, storm, or fire.

The key word is transfer. An AOB is not a bill, not a contract for work, and not a simple request to pay your contractor. It hands over the legal right to pursue and collect the insurance money itself. Once that right is assigned, the third party — the “assignee” — deals with the insurer directly, in its own name and interest. They decide how to negotiate, when to settle, and whether to litigate. You, the homeowner, can end up on the sidelines of your own claim.

Florida defines the AOB framework in Fla. Stat. §627.7152. Understanding what you are signing — and what Florida’s reforms now prohibit — is the difference between keeping control of your claim and giving it away.

Why Florida Cracked Down on AOB Abuse

For years before reform, the assignment of benefits became closely associated with a surge of property-insurance litigation in Florida — especially on water-damage and roof claims. The pattern was recognizable: a vendor would get a homeowner to sign an AOB at the door, perform work, bill the insurer at a disputed amount, and then sue the carrier when it pushed back. Because the benefits had been assigned, the lawsuit moved forward with the homeowner no longer steering — and sometimes unaware of how the claim was being handled in their name.

Consumer-advocacy organizations — including the American Policyholder Association, a real nonprofit that documents contractor fraud and inflated-claim schemes — have highlighted how these arrangements can leave policyholders exposed: signing away rights they did not fully understand, with little control over scope, cost, or settlement.

Florida lawmakers responded with two waves of reform — HB 7065 in 2019 and SB 2-A in 2022 — to rein in the litigation and the practices tied to it. The result reshaped what a Florida policyholder can, and cannot, assign.

Sign Away the Claim, or Keep Control?

This is the heart of the AOB-versus-public-adjuster choice. One path transfers your claim to someone else. The other keeps it firmly in your hands while a licensed professional represents you.

Signing an AOB

You transfer post-loss benefits to a contractor or vendor
The assignee deals with the insurer in its own interest
You may lose control over scope, settlement, and strategy
No statutory cap on the third party’s charges
Now void on residential policies and post-2023 commercial policies (§627.7152(13))

Hiring a Public Adjuster

Nothing is assigned — you keep your claim
The public adjuster represents you and takes your direction
The insurer pays you, the policyholder, directly
Fee capped by statute: 20% standard, 10% in a declared-emergency year (§626.854)
Permitted statewide and unaffected by the AOB prohibition

Florida Statutes That Touch Your Property Claim

Beyond the AOB rules, a handful of Florida statutes shape how property claims are valued and paid. A public adjuster works within these on the valuation side; how any of them applies as a legal matter is a question for a licensed attorney.

§627.7152 & §627.7153 — Assignment of Benefits

The AOB framework created by HB 7065 (2019) and tightened by SB 2-A (2022). §627.7152(13) now voids assignments of post-loss benefits on residential policies and on commercial policies issued on or after January 1, 2023.

§626.854 — Public Adjusters & the Fee Cap

Licenses and regulates public adjusters and sets the fee caps: generally 20% of the claim payment, or 10% for a claim tied to a Governor-declared emergency made within one year of the declaration.

§627.70131 — Prompt Payment

Sets timelines for insurers to acknowledge, investigate, and pay property claims. A well-documented claim keeps these statutory clocks working in your favor.

§626.9744 — Matching

Addresses mismatches when damaged items are repaired or replaced next to undamaged ones — for example roofing, siding, or flooring in the same line of sight. A core valuation issue a public adjuster documents and negotiates.

§627.7011 & the Florida Building Code — Roof & Replacement Cost

Govern replacement-cost coverage on dwellings and how roofs are repaired and replaced — provisions that can affect the scope and valuation of a roof claim.

§627.351(6) — Citizens Property Insurance

Establishes Citizens, Florida’s state-created insurer of last resort. Citizens policyholders are subject to the same AOB framework and may hire a licensed public adjuster under §626.854.

Statutory citations refer to the Florida Statutes (flsenate.gov). DCS is a public adjusting firm, not a law firm; how any statute applies to your policy is a legal question for a licensed attorney.

How DCS Helps Florida Policyholders

What We Do

DCS is a licensed Florida public insurance adjusting firm — Florida Firm #W820363 — representing policyholders, not carriers, under §626.854. We inspect, document, and value your loss; build the line-item estimate and proof of loss; and negotiate scope, pricing, matching, and depreciation with the insurer. You keep your claim and the carrier pays you.

Our founder worked 2010–2017 as a carrier field adjuster and team lead, so we build the file the way the insurance company expects to receive it. We work “no recovery, no fee” within the statutory caps.

Where We Stop

We do not draft or interpret assignment agreements, give legal advice, or pursue coverage litigation or bad-faith remedies — that is the work of a licensed attorney. Whether a particular document is a prohibited assignment under §627.7152 is a legal question for counsel.

The upside for you is simple: with a public adjuster, you never have to sign your claim away to get professional help — you stay in control while we do the heavy lifting on value.

Related Resources

Florida Insurance Claim Laws

Prompt-pay deadlines, valued policy law, and your statutory rights.

Public Adjuster vs. Attorney

Who handles valuation vs. legal disputes, and how fees compare.

Public Adjuster Fee Calculator

Estimate the capped fee on your claim in Texas or Florida.

Frequently Asked Questions

What is an assignment of benefits (AOB) in Florida?

An assignment of benefits is an agreement in which a policyholder transfers some or all of the post-loss benefits of a property insurance policy to a third party — typically a contractor, restoration company, or water-mitigation firm — so that the third party can pursue payment directly from the insurer. Florida defines the AOB framework in Fla. Stat. §627.7152. Under §627.7152(13), as amended by the 2022 SB 2-A reforms, a policyholder may not assign post-loss benefits under a residential property insurance policy, or under a commercial property policy issued on or after January 1, 2023, and any attempt to do so is void, invalid, and unenforceable. By contrast, hiring a public adjuster does not transfer your claim to anyone — the adjuster represents you.

What changed under Florida’s 2019 and 2022 AOB reforms?

Florida’s 2019 reform (HB 7065) created §627.7152 and §627.7153. It set rules for AOB agreements — they had to be in writing, allow the policyholder to rescind within 14 days, require the assignee to deliver a copy to the insurer within 3 business days, include an indemnify-and-hold-harmless provision, and give 10 business days’ written pre-suit notice. It also created §627.7153, letting insurers sell policies that restrict assignment only if they also offer an unrestricted version. The 2022 reform (SB 2-A) went much further: §627.7152(13) now prohibits assigning post-loss benefits under residential policies, and under commercial policies issued on or after January 1, 2023, and makes any attempted assignment void. Legal interpretation of how these provisions apply to a specific policy is a question for a licensed attorney.

How is hiring a public adjuster different from signing an AOB?

A licensed public adjuster, regulated under Fla. Stat. §626.854, is your representative — they inspect the damage, prepare a line-item estimate, document the loss, and negotiate the claim amount with the carrier on your behalf. You keep ownership of your claim and the insurer pays you. An AOB instead transfers the post-loss benefits themselves to a contractor or vendor, who then deals with the insurer in place of you. A public adjuster’s compensation is also capped by statute (generally 20% of the recovery, or 10% on a claim tied to a Governor-declared state of emergency made within one year of the declaration). An AOB has no such statutory fee cap on the third party’s charges.

Is a public adjuster fee-capped in Florida, and at what rate?

Yes. Under Fla. Stat. §626.854(11), a public adjuster’s fee generally may not exceed 20% of the insurance claim payment. For a claim based on events that are the subject of a Governor-declared state of emergency, the cap is 10% if the claim is made within one year after the declaration. The statute also caps supplemental and reopened claims at 20% and provides that these fees are exclusive of attorney fees. These caps protect the policyholder; an AOB is governed by §627.7152, not by the §626.854 fee cap.

Can I still use a public adjuster if I cannot sign an AOB?

Yes. The 2022 prohibition in §627.7152(13) restricts assigning post-loss benefits to a third party such as a contractor — it does not restrict your right to hire a licensed public adjuster to represent you under §626.854. A public adjuster does not take an assignment of your benefits; you remain the policyholder and the insurer pays you directly. Whether any particular agreement counts as a prohibited assignment is a legal question best confirmed with a licensed attorney.

Why did Florida crack down on assignment of benefits in the first place?

Over the years leading up to reform, assignment of benefits became closely associated with a surge in property-insurance litigation in Florida, particularly on water-damage and roof claims. In a typical pattern, a vendor would have a homeowner sign an AOB at the door, perform work, bill the insurer at a disputed amount, and then litigate when the insurer pushed back — with the homeowner no longer in control of the claim. Florida lawmakers passed HB 7065 in 2019 and then SB 2-A in 2022 to curb that litigation and the practices tied to it. Consumer-advocacy groups such as the American Policyholder Association have documented contractor-fraud and inflated-claim schemes in the broader market, which is part of why keeping the policyholder in control matters.

If I sign an AOB, do I lose control of my own claim?

In substance, yes — that is the defining feature of an assignment of benefits. Once you assign your post-loss benefits, the assignee (the contractor or vendor) steps into your shoes for those benefits: they deal with the insurer directly, decide how hard to push, and may litigate in their own name and interest. You may have limited say over scope, settlement, or strategy. By contrast, a public adjuster represents you, takes direction from you, and never takes ownership of your claim — you remain the policyholder and the insurer pays you.

What is the difference between an AOB and a direction-to-pay?

They are not the same. An assignment of benefits transfers the post-loss benefits themselves — the legal right to pursue and receive them — to a third party. A direction-to-pay is a more limited instruction asking the insurer to send payment (or part of it) to a contractor for work performed, without transferring the underlying claim rights. Florida's §627.7152 restrictions are aimed at assignments of benefits. Whether a given document is an assignment, a direction-to-pay, or something else is a legal question that should be confirmed with a licensed attorney before you sign anything.

Does the AOB prohibition apply to commercial property too?

Under the 2022 SB 2-A reform, §627.7152(13) prohibits assigning post-loss benefits under residential property insurance policies, and under commercial property insurance policies issued on or after January 1, 2023. So a commercial policy issued before that date may sit under different rules than one issued after it. Because the answer turns on policy type and issue date, confirm how the statute applies to your specific commercial policy with a licensed attorney.

Is matching covered in Florida, and can a public adjuster pursue it?

Florida's matching statute, Fla. Stat. §626.9744, addresses situations where repairing or replacing damaged items leaves a mismatch with undamaged surrounding items — for example, a section of roof, siding, or flooring. It provides that, under certain conditions, the insurer must account for matching of items in the same line of sight. Matching is a valuation issue — exactly the kind of amount-of-loss question a licensed public adjuster documents and negotiates. Whether matching applies to a specific loss depends on the policy and the facts; a public adjuster builds the documentation, while any legal dispute over coverage remains attorney work.

Do Florida roof rules affect my claim, and how does a public adjuster help?

Florida law and the Florida Building Code include provisions affecting how roofs are repaired and replaced, and Fla. Stat. §627.7011 addresses replacement-cost and related coverage on dwellings. These rules can affect the scope and valuation of a roof claim. A public adjuster's role is to document the damage, build the line-item estimate, and account for code-related scope in the valuation, then negotiate that amount with the carrier. How a specific code provision or policy term applies as a legal matter is a question for a licensed attorney.

I have a Citizens policy — does any of this change?

Citizens Property Insurance Corporation is Florida's state-created insurer of last resort, established under Fla. Stat. §627.351(6). Citizens policyholders are subject to the same statewide AOB framework under §627.7152 and may hire a licensed public adjuster under §626.854 just like policyholders of private carriers. The public adjuster fee caps in §626.854 apply the same way. As always, whether a particular agreement is a prohibited assignment, or how a specific Citizens policy term applies, is a legal question for a licensed attorney.

How does a public adjuster get paid in Florida, and is there a prompt-pay deadline on my claim?

A Florida public adjuster's fee is capped under §626.854(11): generally 20% of the claim payment, or 10% for a claim based on a Governor-declared state of emergency made within one year of the declaration, with supplemental and reopened claims also capped at 20%. Separately, Florida's prompt-pay statute, Fla. Stat. §627.70131, sets timelines for insurers to acknowledge, investigate, and pay claims. A well-documented claim keeps those statutory clocks working in your favor. Public adjusters handle the valuation and negotiation; any legal enforcement of those deadlines is attorney work.

Educational Information - Not Legal Advice

The information on this page is for general educational purposes only. Dependable Claims Specialists is a licensed public adjusting firm - not a law firm. Public adjusters help policyholders inspect, document, evaluate, and negotiate property insurance claims, which includes reading and applying your policy in the ordinary course of adjusting (coverage parts, exclusions, endorsements, scope). We do not practice law and we do not provide legal advice. For legal opinions, demand letters, Chapter 542A pre-suit notices, statutory remedies under the Insurance Code, or litigation, consult a licensed attorney in your state. Texas public adjusters operate under TX Ins. Code Chapter 4102; Florida public adjusters operate under FL Statute §626.854.

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