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 Insurance 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 void and unenforceable on property insurance policies issued on or after January 1, 2023 under §627.7152(13). DCS is a public adjusting firm, not a law firm. How that statute applies to your policy is a legal question for a licensed attorney. 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 fee follows a written agreement within the Florida limits that apply to the claim. A legal question about what an assignment agreement means, and any coverage dispute or lawsuit, is 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, and the PA 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	Set by the agreement and applicable law, not the public adjuster fee structure	Written agreement within the Florida fee limits that apply to the claim (section 626.854)
Current Florida status	Prohibited for residential 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 issued on or after January 1, 2023
The same prohibition applies to commercial property policies issued on or after that date
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 assignment agreements, give legal advice on what they mean, or pursue coverage litigation or bad-faith remedies. Those are 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))

Residential and condominium-unit claims generally have a 20% limit, subject to lower limits in some situations
10% for a claim based on a Governor-declared state of emergency, made within one year of the declaration
Supplemental and reopened claims may not exceed 20% of eligible new recovery and remain subject to lower applicable limits
Lower 1% or 0% limits can apply; prior payments or written commitments, deductibles, attorney fees and costs, and additional living expenses have separate rules

Why It Matters

When you hire a public adjuster, public-adjuster compensation is agreed in writing and may not exceed the applicable legal limits and you remain the policyholder. The insurer pays you. An assignment of benefits, governed by §627.7152, can transfer some or all specified post-loss benefits where legally permitted, with the assignee charges and rights governed by the agreement and applicable law rather than the public adjuster fee structure. Have counsel review the actual document. Florida now voids most AOBs, so a policyholder who wants help can keep the claim and, if the policyholder chooses, use a licensed public adjuster.

What an Assignment of Benefits 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 or a contract for work. 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. DCS is a public adjusting firm, not a law firm, so whether a particular document is a prohibited assignment is a legal question for a licensed attorney. Know what you are signing and what Florida’s reforms now prohibit before you sign.

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 nonprofit that documents contractor fraud and inflated-claim schemes), have highlighted how these arrangements can leave policyholders exposed: signing away benefits they did not fully understand, with little control over scope, cost, or settlement.

Florida lawmakers responded with two reforms, 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?

One path transfers your claim to someone else. The other keeps the claim with you while a licensed professional represents you. DCS is a public adjusting firm, not a law firm: whether a document is a prohibited assignment is a legal question for a licensed attorney.

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
Charges and rights set by the agreement and applicable law
Now void on residential and commercial property policies issued on/after Jan 1, 2023 (§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
Written fee within the limits that apply under section 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 and commercial property policies issued on or after January 1, 2023.

§626.854: Public Adjusters & the Fee Cap

Licenses and regulates public adjusters and sets compensation limits. Compensation is agreed in writing and cannot exceed the applicable limits.

The Appraisal Clause (Policy Provision)

Most property policies include a contractual appraisal provision for resolving disputes about the amount of loss. It is a valuation process on the claim side that a public adjuster can support, separate from any lawsuit.

§626.9744: Matching

Addresses mismatches when damaged items are repaired or replaced next to undamaged ones (for example roofing, siding, or flooring in adjoining areas). A core valuation issue a public adjuster documents and negotiates; how the statute applies to a specific loss is a question for a licensed attorney.

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

Govern replacement-cost coverage on dwellings and how roofs are repaired and replaced. These provisions 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 assignment agreements, give legal advice, or pursue coverage litigation or bad-faith remedies. Those are the work of a licensed attorney. Whether a particular document is a prohibited assignment under §627.7152 is a legal question for counsel.

With a public adjuster, you do not have to sign your claim away to get professional help. You stay in control while DCS does the valuation work.

Related Resources

Florida Public Adjuster Rules

Fee caps, contract requirements, and licensing for public adjusters under §626.854.

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 or commercial property insurance policy issued on or after January 1, 2023, and any attempt to do so is void, invalid, and unenforceable. How the provision applies to a policy issued before that date is a legal question for a licensed attorney. 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 and commercial property policies issued on or after January 1, 2023, and makes any attempted assignment void. 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. The adjuster inspects the damage, prepares a line-item estimate, documents the loss, and negotiates 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. Public-adjuster compensation is agreed in writing and stays within the Florida fee limits that apply to the claim. Florida law limits the fee for home and condo unit claims, and lower limits apply in some situations, such as claims after a declared emergency. An assignment can transfer some or all specified post-loss benefits where legally permitted, and the contractor charges and assignment rights remain subject to the agreement and applicable law rather than the public adjuster fee structure. Have counsel review the actual document.

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

Public-adjuster compensation is agreed in writing and cannot exceed the applicable legal limits. For residential and condominium-unit claims, Florida section 626.854 generally limits fees to 20%, or 10% for qualifying emergency claims made within one year after the declaration. Lower 1% or 0% limits can apply. Prior payments or written payment commitments, deductibles, attorney fees and costs, and additional living expenses have separate rules. The written state-specific agreement and applicable law determine the fee. Supplemental and reopened claims remain subject to any lower applicable limits and are based on eligible recovery obtained through the work of the public adjuster.

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

Yes. Hiring a licensed public adjuster to document and negotiate your claim is different from assigning policy benefits. DCS does not take an assignment of your claim. Ask a licensed Florida attorney to review any assignment agreement and explain how Florida law applies before you sign.

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 and commercial property insurance policies issued on or after January 1, 2023. So a 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 addresses reasonable repair or replacement of items in adjoining areas when replacements do not match in quality, color, or size, subject to the policy and the statutory factors. Matching is a valuation issue, 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?

Public-adjuster compensation is agreed in writing, not fixed at a mandatory statutory rate. For residential and condominium-unit claims, Florida section 626.854 generally limits fees to 20%, or 10% for qualifying emergency claims made within one year after the declaration. Lower 1% or 0% limits can apply. Prior payments or written payment commitments, deductibles, attorney fees and costs, and additional living expenses have separate rules. The written state-specific agreement and applicable law determine the fee. Questions about legal deadlines and enforcement should be reviewed by a licensed Florida attorney. DCS documents, values and negotiates property claims within its engagement.

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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