Contractors, insurers and builders spar over proposed limits on assignment‑of‑benefits and contractor practices

Legislators and witnesses spent part of the committee hearing on proposed changes to property‑insurance claims and assignment‑of‑benefits practices, an issue state officials and insurers say has driven up homeowners’ premiums.

The proposed bill would restrict certain contractor practices around insurance assignments, require clearer disclosures to homeowners and create penalties for unlicensed or abusive behavior that seeks to exploit assignment of benefits (AOB) contracts.

Why it matters: Testimony described a market in which some restoration and roofing contractors use assignment contracts and aggressive litigation to extract larger payments from insurers, leading to higher costs for insurers and, witnesses said, higher homeowner premiums. Supporters of the bill said it protects consumers and stabilizes…