State Farm insurance is issuing warnings about a legal, but often abused, method of filing claims in the aftermath of Hurricane Irma.
State Farm, which as of midday Wednesday had received 11,200 Florida homeowners’ claims and 3,660 auto claims reporting damage from the storm, is warning homeowners about assigning their benefits over to a contractor.
While AOB is a legal tool that can be used appropriately, it also provides an opportunity for dishonest companies to partner with trial attorneys to significantly inflate home repair costs, State Farm said in a news release. This can lead to an increase in premiums that adversely affect Florida policyholders.
State Farm provides these tips to avoid AOB issues: