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Beware of “Post-Loss Assignment” on Home Repair

The Nebraska Department of Insurance is warning homeowners against signing a “post-loss assignment” with a contractor repairing an insured loss on their home. Some contractors say they require a post-loss assignment, but signing such a document could cause problems later, said the department in an online consumer warning...
July 11, 2017

The Nebraska Department of Insurance is warning homeowners against signing a “post-loss assignment” with a contractor repairing an insured loss on their home. Some contractors say they require a post-loss assignment, but signing such a document could cause problems later, said the department in an online consumer warning.

Once homeowners assign their claim to a contractor, the contractor owns the rights to any insurance claim, the department said. This could cause potential problems, such as if the contractor and insurer disagree about payment, the contractor could sue the insurer in the homeowner’s name without his or her permission. In addition, the homeowner may be financially responsible to the contractor for the difference between the contractor’s price and the insurer’s payment. The department advises consulting an attorney and reading such an assignment carefully before signing.


The Florida Department of Financial Services has published a resource page with consumer warnings about assignment of benefits, including a downloadable consumer brochure.

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