SERVPRO of Crowley and South Johnson County understands the urgency a homeowner experiences when flood restoration services are needed. Water removal and applied structural drying are necessary to prevent advanced secondary damage that can lead to a mold infestation. If roof damage has occurred, emergency tarping is required to stop further water intrusion.
Distraught property owners will often turn to the first available water extraction company, roofing contractor, or tree removal service for assistance. This hasty decision could have far-reaching negative consequences. Homeowners can avoid home repair frauds after storm damage and flooding by understanding how the insurance claims process works, the risk in dealing with unknown and unproven service providers, and what to do if repairs are needed after suffering significant storm damage.
Important Factors to Consider Before Signing an Assignment of Benefits (AOB)
The National Association of Insurance Commissioners (NAIC) urges homeowners to exercise caution when dealing with storm and flood restoration service providers that insist that the client sign an Assignment of Benefits. According to the NAIC, “An Assignment of Benefits, or an AOB, is an agreement signed by a policyholder that allows a third party—such as a water extraction company, a roofer or a plumber—to act on behalf of the insured and seek direct payment from the insurance company. An AOB can be a useful tool for getting repairs done, as it allows the repair company to deal directly with your insurance company when negotiating repairs and issuing payment directly to the repair company. However, an AOB is a legal contract, so you need to understand what rights you are signing away and you need to be sure the repair company is trustworthy.”
Under the Assignment of Benefits, the roofing company, plumber, or other third-party files the insurance claim, makes decisions about the repairs, and collects payments from the insurance company. While this arrangement expedites the repairs, the property owner is not involved in the process.
Upon signing an AOB, the insurance company only communicates with the third-party service provider. The service provider can sue the insurance company, and the property owner can forfeit the right to mediation. The roofer, plumber, or contractor may demand a larger claim payment than the insurer has offered. The third-party may then sue the insurance company when the claim is denied.
A property owner is not required to sign an AOB for repairs to be completed. The policyholder is allowed to file a claim directly with the insurance company. In this situation, the homeowner or business maintains control of the rights and benefits the policy provides in resolving the claim.
Avoiding Home Repair Fraud
The circumstances surrounding a natural disaster are a magnet for home repair fraud. Unsavory service providers flock to disaster zones to make quick money by taking advantage of vulnerable property owners desperate for help.
Several tips can help the homeowner or business owner avoid scammers.
- Seek out storm and flood damage restoration services from businesses that are locally owned and operated. Their service patterns have established a track record in the community.
- Go with trusted companies. Proof of integrity can be ascertained through reviews.
- Ask family, friends, and co-workers for references.
- Request recommendations or a list of preferred service providers from the insurer.
- Obtain multiple bids on a work project.
Be aware that the adjuster may want to review any estimates before repairs are initiated.
What to Do in the Aftermath of the Flood or Storm Damage
Begin by compiling an accurate account of the damage for the insurance company; the report will be needed when the claim is filed. Document all damages before removing any debris or belongings. Take photos and video, and list the damages and lost items. Save damaged items for inspection by the insurance company. Report the claim immediately to avoid violating any time requirements in the policy. After the report is filed, a claims adjuster will assess the damage at no cost to the policyholder.
SERVPRO: Trusted Across the United States
As a locally owned and operated business, the SERVPRO of Crowley and South Johnson County team lives and works in this community. The team is available 24/7, 365 days a year, including holidays.
SERVPRO has a solid reputation for working closely with insurance companies. A specially trained technician inspects the damage scene and produces a detailed estimate with full documentation, including photos and video. From beginning to end, SERVPRO manages the claims process efficiently, accurately, and professionally.
Contact SERVPRO of Crowley and South Johnson County for more information about storm damage restoration in Cresson, TX, and surrounding areas. The office can be reached by calling (817) 297-8588 or by emailing office@servprocrowley.com.
