Mitigation contractors oftentimes want the owner-insured to assign them their rights to benefits and proceeds under a property insurance policy. Owners oftentimes prefer this in consideration of the mitigation contractor only looking to the property insurer to pay for the mitigation work. Are such assignments enforceable? The answer is yes- an insured can assign post-loss claims (benefits) under its property insurance policy to a mitigation contractor.
In Bioscience West, Inc. v. Gulfstream Property and Cas. Ins. Co., 185 So.3d 638 (Fla. 2d DCA 1015), a water mitigation contractor performed water removal and repair services on a residential home after an owner experienced a water loss. The homeowner assigned her property insurance benefits to the water mitigation contractor. The insurer argued that the assignment was unenforceable. The appellate court disagreed. Post-loss policy insurance claims are assignable. Bioscience West, 185 So.3d at 643 (“We agree and hold that post-loss insurance claims are freely assignable without the consent of the insure.”).
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