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ASSIGNMENT OF BENEFITS

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ASSIGNMENT OF BENEFITS
Assignment of Benefits is a commonly used tool by water, fire/smoke restoration and resolution contractors.Assignments of Benefits is typically a written contract proposal form for the restoration contractor and has become the standard method for guaranteeing payment by the homeowner’s insurance carrier. Assignment of post-loss benefits have been recognized in Florida since 1917, as set forth in the Florida Supreme Court’s decision in West Florida Grocery Co. v. Teutonia Fire Ins. Co., 77 So. 209 (Fla. 1917). Florida’s Second District Court of Appeal recently upheld the ability of a policyholder insured to make multiple assignments under a homeowner’s insurance policy.  Nicon Construction v. Homeowners Choice Property and Casualty Insurance Company cite involved a policyholder’s issuing assignments of benefits to separate restoration and reconstruction vendors.  The insurer argued that upon the policyholder’s assigning the policy rights to the first restoration ve…