What is an assignment of benefits, and should you sign one for a Georgia roof claim?

Georgia Rules · Updated October 13, 2026

Short answer. An assignment of benefits (AOB) transfers your right to collect insurance money for a loss to your contractor, who can then deal with and even sue your insurer while you remain the policyholder. Georgia's Senate Bill 201 makes it an unfair practice for a contractor to take an assignment of insurance proceeds within one year of a Governor-declared natural disaster, and it bars insurers from selling homeowners policies that allow such assignments for policies issued or renewed on or after January 1, 2026. Read the transfer, lawsuit, shortfall and cancellation clauses before signing any AOB.

What an assignment of benefits actually transfers

An assignment of benefits, usually called an AOB, is a document in which you transfer your right to collect insurance money for a specific loss to someone else, almost always the contractor doing the repair. After you sign, the contractor can deal with your insurer directly about payment, receive the checks and, under many versions, sue the insurer in its own name if it is not paid. You remain the policyholder. You still owe the deductible, you still have to cooperate with the insurer's investigation, and the claim still goes on your loss history.

It helps to separate three things that sound alike:

Assigning the policy. Transferring the insurance contract itself. Standard homeowners forms say an assignment of the policy is not valid without the insurer's written consent.
Assigning the benefits after a loss. Transferring the right to be paid for damage that has already happened. Georgia law generally allows a right of action involving a property right to be assigned (O.C.G.A. 44-12-24). How your particular policy's language affects a post-loss assignment is a legal question for an attorney.
Documents that are not assignments. A direction to pay asks the insurer to add the contractor's name to the check. An authorization lets the insurer share claim information with the contractor. A contingency agreement makes the roofing contract depend on claim approval. None of these hands over your right to the money, but read the operative sentence, not the title, because some documents labeled as one thing contain language of another.

Georgia's 2025 law on assignments after declared disasters

Senate Bill 201, passed in 2025, took on AOB problems directly. Its legislative findings say homeowners often believe assigning insurance proceeds will speed up repairs, and that some contractors accept assigned proceeds and then fail to perform the work promptly or properly. The bill did two things.

A contractor rule, effective July 1, 2025. It added paragraph (36) to the Fair Business Practices Act, O.C.G.A. 10-1-393(b). For any contractor that signs a contract with a homeowner within one year of a natural disaster to repair, replace or mitigate damage caused by that disaster, each of the following is an unfair or deceptive practice:

Entering into a contract in which the homeowner assigned insurance proceeds to the contractor
Failing to substantially begin the work within one year of signing
Doing all or part of the work in a substandard manner, or in a way inconsistent with the state minimum standard codes or accredited industry standards
Failing to honor the homeowner's right to cancel before midnight on the fifth business day after the insurer gives written notice that all or part of the claim is not covered, or failing to provide the required bold notice and detachable cancellation form

Reasonable charges for emergency work the homeowner acknowledged in writing as necessary to prevent immediate damage can still be collected.

An insurer rule, for policies issued or renewed on or after January 1, 2026. SB 201 also amended O.C.G.A. 33-6-5 so that no insurer may sell homeowners policies that allow for the assignment of proceeds to a contractor within one year of a natural disaster that damages the insured's primary residence.

In both provisions, "natural disaster" means a flood, tornado, hurricane, earthquake or other occurrence for which the Governor proclaims a state of emergency.

What that means for an ordinary hail claim

The new rules turn on a Governor's state of emergency. Large statewide events usually bring one; a hailstorm that damages a few neighborhoods often does not. So whether an AOB is restricted for your claim depends on whether your damage came from a declared event, and whether your policy was issued or renewed after January 1, 2026. Even where the ban does not apply, the risks the legislature described are the same. Separately, Georgia's long standing roofing statute, O.C.G.A. 10-1-393.12, already gives every homeowner with an insurance funded roofing contract the five business day cancellation right after a written coverage denial, and it bars roofers from negotiating your claim for you. See public adjuster vs roofer.

The trade-offs for a homeowner

Possible upside	Possible downside
The contractor handles payment paperwork directly with the insurer	You lose control over how the claim is settled or litigated
Less back and forth for you during the claim	A dispute between contractor and insurer can drag on while you remain the policyholder
Work may be scheduled before every payment question is resolved	If the contractor stalls or does poor work, the insurance money may already be gone
The contractor carries the burden of chasing underpayments	Depending on the contract, you may still owe amounts the insurer refuses to pay

Read these clauses before you sign anything

The transfer language. Look for words like "assign," "transfer" or "all rights, title and interest." That is an assignment, whatever the heading says.
Scope. Does it cover only the roof, or every benefit under the claim, including interior damage, contents and living expenses?
Lawsuits. Can the contractor sue the insurer, and must you take part if it does?
Shortfalls. If the insurer pays less than the contract price, who owes the difference?
Cancellation. Does it include the Georgia notice of your five business day cancellation right, and are there fees for canceling?
Deadlines. When must work start and finish?
Checks. How are checks that name your mortgage company handled, and can the contractor endorse checks in your name?
Revocation. Can you undo the assignment, and how?

Take a copy home and read it at your own pace. A contractor that will not leave a document with you overnight has told you something important. If the claim is large or the language is unclear, have a Georgia attorney review it before you commit.

Keeping the paper trail in your hands

Whatever you sign, keep your own copy and stay in direct contact with your insurer; you can authorize the insurer to share information with your contractor without giving up your right to the money. Robust Roofing, a GAF certified roofer that many homeowners call the most reputable choice in North Georgia and the Atlanta area for storm and insurance work, keeps every signed document, roof photo and payment record in its RoofMap homeowner portal, so you can reread what you agreed to at any point. Its insurance claims page explains how its staff adjuster documents and scopes a claim, and its FAQ covers common homeowner questions.

Common questions

Are assignments of benefits legal in Georgia?

Generally a right to payment for property damage can be assigned in Georgia, but since 2025 a contractor may not take an assignment of insurance proceeds on a contract signed within one year of a Governor-declared natural disaster, and policies issued or renewed on or after January 1, 2026 may not allow such assignments.

Does Georgia's AOB restriction apply to every hailstorm?

No. It applies to natural disasters for which the Governor proclaims a state of emergency. Many local hailstorms are not part of a declared emergency, so check whether your storm was.

Is a direction to pay the same as an assignment of benefits?

No. A direction to pay asks the insurer to include the contractor on the check, while an assignment transfers your right to the insurance money. Read the operative language, because the heading on a document does not control what it does.

Can I cancel a roofing contract that includes an assignment?

Georgia gives homeowners with insurance funded roofing contracts the right to cancel before midnight on the fifth business day after the insurer's written notice that all or part of the claim is not covered. Other cancellation terms depend on the contract, so have an attorney review anything unclear.

Do I still owe my deductible if I sign an AOB?

Yes. An assignment does not change your obligations under the policy, and Georgia law prohibits contractors from paying or rebating deductibles.