What is an assignment of benefits on a roof claim?
An assignment of benefits, or AOB, hands some or all of your rights under the insurance claim to the contractor. It can make things simpler, or it can take control of your claim away from you.
Last reviewed against official sources. General information, not insurance or legal advice.
The short answer
An AOB is a document that transfers your right to be paid on the claim, and sometimes your right to sue the insurer, to the contractor. Once signed, the contractor may deal with the insurer and be paid directly, and can sometimes sue the insurer in its own name. You usually still owe your deductible and can still be affected by what happens.
What you may give up
- Control over how the claim is handled and settled
- The choice to use a different contractor if you are unhappy
- Direct payments from your insurer
Questions to ask before you sign
- Is this an AOB? Ask the contractor to point to the assignment language.
- Can I cancel it, and how?
- What will I owe if the insurer pays less than the contract price?
- Does it cover only the roof or the whole claim, including the interior and contents?
- Is the contractor licensed, and is the license number on the document?
AOB, direction to pay, or contingency agreement?
Contractors use several kinds of paperwork after a storm, and they are not the same. A direction to pay usually asks the insurer to put the contractor's name on the check or pay the contractor directly, but it leaves the claim itself with you. A contingency agreement usually says the contractor will do the work at the insurer's approved price if the claim is approved, and often becomes a binding contract once it is. An assignment of benefits goes further and hands the claim, or part of it, to the contractor. Read the title and the signature block, and ask which one you are signing.
In North Carolina, only a licensed public adjuster may represent you on a claim for a fee. Public adjusters, who represent the policyholder for a fee, must be licensed by the NC Department of Insurance. Ask for the license and confirm it with the department before you sign. If a contractor offers to "handle the insurance" for you, ask what that means in writing.
This page is general information, not legal advice. Talk to a licensed attorney before signing an AOB on a large claim.
Frequently asked questions
What does assignment of benefits mean?
It transfers some or all of your rights under an insurance claim, such as the right to be paid, to someone else, usually the contractor.
Should I sign an AOB with a roofer?
Only after you understand what rights you are giving up, how to cancel, and what you would owe if the insurer pays less. Consider having an attorney review it on a large claim.
Do I still pay my deductible with an AOB?
Generally yes. The deductible is your share of the loss under the policy.
Policies vary. Check your own policy and ask your insurer or agent about anything that affects your claim. Laws and rules can change; this page reflects official sources as of October 29, 2026. WilmingtonNCRoofer.com is not a contractor, insurer, adjuster or law firm.
Find local help
Roofing contractors serving Wilmington and the Cape Fear coast · Ask for storm help · Counties and towns