Clarifying “We Bill Your Insurance” Claims in Florida’s Restoration Industry: What Homeowners Actually Owe After SB 76 (2021) and SB 2-A (2022)

As a local restoration service provider, based in Broward County, FL, we face daily the situation of homeowners deciding on other companies that claim they will bill the insurance carrier and that there is no cost for the homeowner. In Florida today, “we bill your insurance directly” is a marketing line, a misleading sales pitch elevator to take advantage of homeowners in the moment of most need—not a guarantee that the insurer will pay the contractor or that the homeowner is off the hook. Unless a valid Assignment of Benefits (AOB) exists, the service contract is between the restoration contractor and the property owner. The insurer owes only what the policy covers; any denial or underpayment leaves the owner responsible for the balance, and contractors can pursue liens and collections to recover unpaid amounts. State reforms since 2021 have: - Tightened contractor solicitations and cost-estimate requirements (SB 76) - Eliminated one-way attorney fees in property suits - Shortened claim-handling timelines - Banned new AOBs on property policies issued on or after January 1, 2023 (SB 2-A) flsenate.gov

What Changed and Why It Matters

1. AOBs Largely Ended for New Policies

SB 2-A prohibits assigning post-loss benefits for residential and commercial property insurance policies issued on or after January 1, 2023. Older policies may still allow AOBs if they meet statutory requirements. Practically, this removes the main pathway contractors used to stand in the insured’s shoes and pursue payment directly from insurers. Homeowners therefore remain in privity with the contractor—and ultimately liable—unless a valid pre-2023 policy and compliant AOB exists.  Source - flsenate.gov

2. “Direction to Pay” Isn’t a Workaround

Florida’s Chief Financial Officer has warned consumers that AOBs are illegal for policies issued or renewed on/after January 1, 2023, and that some vendors are attempting to sidestep the ban by requiring insurers to pay them directly. A “direction to pay” does not transfer policy rights and does not relieve the homeowner of responsibility if the insurer denies or underpays. Source - myfloridacfo.com

3. Faster Claim Timelines, No More One-Way Fees

SB 2-A shortened several deadlines: insurers must acknowledge claim communications and begin investigating within 7 days, complete physical inspections within 30 days (including hurricane claims), and pay or deny within 60 days (subject to limited exceptions). The law also eliminated one-way attorney fees in property insurance suits, shifting litigation incentives and making fee recovery depend on mechanisms like the offer-of-judgment statute. Source - flsenate.gov

4. Contractor Solicitations and Estimates Are Regulated

SB 76 (effective July 1, 2021; Ch. 2021-77) created Florida Statutes §489.147, which: - Prohibits contractor advertisements and inducements tied to insurance claims (e.g., offering a gift or deductible waiver for a roof inspection) - Forbids unlicensed adjusting or policy interpretation - Requires a good-faith, itemized estimate before obtaining authorization to repair - Authorizes fines up to $10,000 per violation
This curbs aggressive “we’ll handle your claim” pitches and requires clearer pricing up front. Source - flsenate.gov

Who Is Actually Obligated to Pay?

• Privity and Payment
  Without a valid AOB, the contractor’s agreement is with the owner, not the insurer. Insurers pay covered losses per the policy; any shortfall (denial, depreciation, limits, exclusions, or scope differences) remains the owner’s responsibility under the work authorization. Source - myfloridacfo.com.

• Lien Exposure
  Under Florida’s construction lien law (Chapter 713), contractors have lien rights when they furnish labor, services, or materials to improve real property. A recorded claim of lien can lead to collections or foreclosure proceedings if unpaid. Source - flsenate.gov.

Two Scenarios to Make This Concrete

1. Policy Issued on/after Jan 1, 2023 – AOB not Allowed - Homeowner signs work authorization for $10,000 water mitigation. Insurer pays $7,000 after limits and scope adjustments. Contractor “billed insurance directly,” but a $3,000 gap remains. Owner owes balance; exposure to lien/collections if unpaid. Source - flsenate.gov

2. Policy Issued before Jan 1, 2023 – AOB Potentially Allowed - Owner signed a compliant AOB under §627.7152. Contractor pursues benefits directly from insurer. If AOB is defective or disputed charges fall outside coverage, balances can still revert to owner under the service contract. Source - flsenate.gov

Key Messages for Homeowners and Your Network

• “We bill insurance” means the contractor will submit paperwork to the carrier; it does not mean the carrier is obligated to pay the contractor or that the owner is insulated from balances.

• Check your policy’s issue date to know whether an AOB is even an option; if issued or renewed on/after Jan 1, 2023, new AOBs are banned. Source - flsenate.gov

• Demand a detailed, itemized estimate before authorizing work; it’s required under §489.147. Source - flsenate.gov

• Expect faster insurer communications but understand the 60-day pay/deny window; interest may accrue on late payments. Source - flsenate.gov

• Avoid signing “direction to pay” language as a substitute for AOB; it won’t shift your ultimate responsibility. Source - myfloridacfo.com

Implications for Agents, Adjusters, and Realtors

Set expectations early: owners authorize the work and are ultimately responsible for invoices. Help them separate emergency mitigation (to stop ongoing damage) from discretionary reconstruction, verify policy dates, and keep documentation tight to reduce coverage disputes under compressed timelines. Source - flsenate.gov