Monday, March 19, 2018

In Texas, A Power of Attorney is No Alternative to An Assignment of Benefits

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.