Assignment of Benefits (AOB)
A legal document transferring a homeowner's insurance claim rights to a third party, typically a contractor.
How an AOB Works
An Assignment of Benefits (AOB) is a document that transfers your right to negotiate and collect an insurance payout directly to a contractor. Once signed, the insurance company deals directly with the contractor — not you — on the scope of repairs and the settlement amount.
Why It's Risky for Homeowners
Ohio does not cap what a contractor can bill after an AOB is signed, and once you've signed, you typically lose the ability to get a second opinion, dispute the contractor's scope, or switch companies without a legal fight. Some contractors use AOBs to inflate invoices, then bill the homeowner directly for anything the insurer disputes.
A better approach in almost every case: keep the claim in your own name, get your own estimate, and pay the contractor once work is approved — rather than signing away control of the claim itself.