An assignment of benefits is a legal document that transfers the legal rights of your claim to another party. Assignments of benefits in property claims are most often used by “first-response” vendors such as water mitigation companies. However, any vendor who performs services pertaining to your property may ask for an assignment of benefits.
Because assignments transfer your rights under the policy, you should have one of our attorneys review this document before signing it. We have seen cases where assignments are so broad that they assign ALL of the insured’s rights to the vendor, such that it prevents the insured from challenging an insurance denial through the court.
You should carefully read all documents that are presented to you by vendors who assist in repairing your property and avoid signing documents that contain language that assigns your insurance benefits to any vendor.