Common contractor pitfalls
Assignment of Benefits (AOB)
- Transfers claim rights to contractor
- Carrier-contractor direct negotiation
- Policyholder loses representation
- Florida reform limits but doesn't eliminate
Unlicensed contractors
- No permit possible
- Code compliance uncertain
- Insurance claims complicated
- Liability exposure
Disputes with carrier
- Contractor estimate vs. Xactimate mismatch
- AOB litigation
- Defense costs draining recovery
Quality issues
- Substandard work
- Future claims complications
- Warranty issues
Carrier-preferred vendors
- Pressure to use specific contractor
- Policyholder's choice is protected
- Right to choose your contractor
How to select well
Licensed and insured
- Florida state license verification
- General liability insurance
- Workers comp coverage
- Current permits
Experience with insurance claims
- Understands Xactimate
- Knows carrier procedures
- Works directly with adjusters
References and reputation
- Recent completed jobs
- Google / BBB reviews
- Trade association membership
Written scope
- Detailed line-item estimate
- Matches Xactimate format
- Specifies materials and methods
No AOB demand
- Policyholder retains claim
- Contractor paid from policyholder's settlement
- No transfer of rights
Red flags
- Door-to-door solicitation
- "Sign now before the hurricane" pressure
- AOB as condition of work
- Significantly below-market pricing
- No physical address