Assignment of benefits (AOB) is a legal document entitling the vendor (general contractor, electrician, plumber, etc.) to “stand in the shoes” of the homeowner so they can bill the insurance company (insurer) directly for the services they provide. By signing an AOB, you are essentially transferring your interest in your claim settlement over to the vendor, leaving you with very little control of your insurance claim.
Once an AOB is signed the vendor can request payment from the insurer without your knowledge or permission, even if you are not satisfied with their work. The vendor can also demand any amount they choose from the insurer, and if the insurer does not agree with that amount and refuses to pay, it gives the vendor the right to take legal action.