Assignment of Claim Proceeds
Definition:
The transfer of a homeowner’s right to receive claim payments to another party.
Explanation:
Unlike an AOB, which often gives broader authority, this transfer usually applies to payments only. It is sometimes used to ensure contractors or mortgagees get paid.
Example:
A homeowner might assign claim proceeds to their contractor to guarantee payment once the insurance settlement is issued.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.