Following a catastrophic event (such as a hurricane, tornado, or earthquake), insureds sometimes will not have the resources up
front to make the repairs to their property.
In many states, an insured can hire a contractor to perform the work in
exchange for a post-loss assignment of benefits (AOB) whereby the insured
assigns their rights in their insurance claim to the contractor making the
repairs. From there, the contractor, not
the insured, pursues payment of the claim from the insurer.
