Short answer: According to Fla. Stat. 627.7152, for property policies issued on or after January 1, 2023, a policyholder may not assign, in whole or in part, any post-loss insurance benefit. For policies issued July 1, 2019 through before that date, an assignment agreement is enforceable only if it meets strict rules, including a right to rescind, a copy delivered to the insurer within 3 business days, an itemized estimate, and an 18-point boldface warning.
What does Fla. Stat. 627.7152 do?
Fla. Stat. 627.7152 governs "assignment agreements": the instruments by which a policyholder assigns or transfers post-loss benefits under a residential (or commercial, per s. 627.0625(1)) property insurance policy to a third party, such as a contractor or restoration vendor. It was created by Florida's 2019 assignment-of-benefits reform, effective July 1, 2019, and then narrowed by the December 2022 special-session reform (SB 2-A), which added an outright prohibition for newer policies. The statute controls both whether you can assign your benefits at all and, where you still can, exactly what the paperwork has to say.
Can you still assign your insurance benefits in Florida?
For most new policies, no. For property policies issued on or after January 1, 2023, subsection (13) states that, except as provided in subsection (11), "a policyholder may not assign, in whole or in part, any post-loss insurance benefit" under a residential property policy or a commercial property policy as defined in s. 627.0625(1). That is a flat prohibition, not a paperwork rule. A contractor asking you to sign an assignment under a policy issued in that window is asking for something the statute does not permit.
Which policies does the assignment-agreement regime cover?
The contents, rescission, and notice rules in 627.7152 apply to assignment agreements executed under policies issued July 1, 2019 through before January 1, 2023. Inside that window an assignment can be valid, but only if it satisfies every requirement below. Outside it, on the newer side, the subsection (13) prohibition takes over, so for policies issued on or after January 1, 2023 the required-terms checklist is now largely legacy relevance.
What must a valid assignment agreement contain?
Under subsection (2)(a), an assignment agreement in the covered window is valid only if it meets eight requirements. It must:
- Be under a qualifying policy issued on or after July 1, 2019 and before January 1, 2023.
- Be in writing and executed by and between the assignor and the assignee.
- Grant the policyholder a right to rescind without penalty.
- Require the assignee to give the insurer a copy of the executed agreement.
- Include a written, itemized, per-unit cost estimate of the services to be performed.
- Relate only to work to protect, repair, restore, replace, or mitigate the property.
- Carry the statutory consumer notice in 18-point uppercase and boldfaced type.
- Require the assignee to indemnify and hold the assignor harmless, including attorney fees.
The required 18-point notice warns, in the statute's own words, that "YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH MAY RESULT IN LITIGATION AGAINST YOUR INSURER."
| Requirement | What the statute requires | Timing / limit |
|---|---|---|
| Right to rescind (no penalty) | Assignor cancels by signed written notice | Within 14 days of execution, or at least 30 days after the scheduled commencement date if the assignee has not substantially performed, or at least 30 days after execution if no commencement date is stated and no substantial work has begun |
| Copy to insurer | Assignee delivers the executed agreement to the insurer | Within 3 business days of execution or the date work begins, whichever is earlier |
| Itemized estimate | Written, itemized, per-unit cost estimate of the services | Included in the agreement |
| Consumer warning | Statutory notice giving up policy rights | 18-point uppercase and boldfaced type |
| Prohibited terms | No rescission fee, check or mortgage processing fee, cancellation fee, or administrative fee | Four terms barred |
| Pre-suit notice of intent to litigate | Served on the named insured, the insurer, and the assignor | At least 10 business days before filing suit |
How does the right to rescind work?
The rescission right under subsection (2)(a)3 lets the assignor cancel without penalty by delivering a signed written notice to the assignee. There are three windows: within 14 days after execution; at least 30 days after the date work is scheduled to commence if the assignee has not substantially performed; or at least 30 days after execution if the agreement states no commencement date and the assignee has not begun substantial work. Because the agreement must also deliver a copy to the insurer within 3 business days, the carrier is on notice early, which matters if you later change your mind.
What terms are prohibited in an assignment agreement?
Subsection (2)(b) bars four terms from any assignment agreement: a penalty or fee for rescinding, a check or mortgage processing fee, a penalty or fee for cancellation, and an administrative fee. If a proposed agreement tries to charge you to walk away or tacks on a processing or admin fee, it is using a term the statute forbids.
What notice must an assignee give before filing suit?
Under subsection (9), an assignee cannot sue the insurer under the policy without first serving a written notice of intent to initiate litigation on the named insured, the insurer, and the assignor (if the assignor is not the named insured). That notice must be served at least 10 business days before filing suit. It is a pre-suit gate on the assignee, separate from the general pre-suit notice a policyholder files under Fla. Stat. 627.70152.
How does Ocean Point handle AOB questions?
Ocean Point is a licensed Florida public adjusting firm (DFS license W829547) with 21 years representing policyholders and more than 500 mediations. We work for you, the policyholder, not the contractor. Our team, led by primary public adjuster Eli Goins (license P159790), checks your policy's issue date first: if it was issued on or after January 1, 2023, an assignment of post-loss benefits is barred, and if it falls in the July 1, 2019 to before January 1, 2023 window, we confirm every required term, the 18-point notice, and your right to rescind before anything gets signed. We then document the loss and negotiate the claim so payment comes to you directly. Ocean Point is a member of FAPIA.
Who this is for, and should you sign an AOB?
If your policy was issued on or after January 1, 2023, an assignment of post-loss benefits is barred outright, subject only to the limited exception in subsection (11), so a contractor pushing an AOB is asking for something the statute does not allow. If your policy falls in the July 1, 2019 through before January 1, 2023 window, an assignment can be valid, but only if every required term is present, the 18-point warning appears, and you keep your right to rescind.
Signing away your benefits hands a third party control of your claim and, as the statutory warning itself says, may result in litigation against your insurer. In most cases you are better served keeping the benefits in your own name and hiring a public adjuster who works for you.
Bottom line: check your policy's issue date first; for policies issued on or after January 1, 2023 an AOB of post-loss benefits is not allowed, and for older ones do not sign until every 627.7152 requirement is met and you understand exactly what you are giving up.