The Assignment Form Is Not a Roofing Contract

An assignment form is a short document, often a single page, that a roofer may hand you with the start paperwork. It says that you transfer some or all of your right to insurance payment for the roof work to the company doing the work. These forms go by several names, such as direction to pay, authorization, or insurance benefit agreement. The label matters less than what the words do. Before you sign anything that touches your insurer's money, read what the form moves, to whom, and for how long.

Insurance claim

Your insurance claim is a relationship between you and your insurer. The policy sets what the insurer owes, the claim file records what has been reported and paid, and the insurer's letters go to the address on the policy. An assignment moves a piece of that relationship to someone else. If the form assigns the claim itself, or the right to the claim payment, your insurer may need to deal with the roofer on that piece, and you may lose the ability to direct where the payment goes.

Missouri law draws a clear line here. Under RSMo 407.725, a roofing contractor is barred from representing or negotiating a homeowner's insurance claim, and from saying anything about paying, waiving or covering a deductible. That prohibition is the reason a roofer should not be the person arguing your scope with an adjuster. A form that gives the roofer control of the claim or its payment comes close to the representation the statute forbids. Treat that form as a question for your insurer, and for a lawyer if the wording is unclear, before anything is signed.

Keys Roofing documents the damage, puts a written scope with photos and measurements in your hands, and attends as the contractor while you deal with your own insurer. Keys does not represent or negotiate your claim, and Keys does not take on your deductible. If a form you are handed seems to ask for more than that, stop and ask why.

What the form can change

Read the form for the specific points that change your position. The language is often short, and the effects are not.

• The payee. The insurer may issue the check to you, to the roofer, or to both. Your lender may still be named on the check, which is covered by the mortgage clause in most policies. Confirm the list of names before the check is issued, not after.
• The amount assigned. Some forms assign the whole claim. Others assign only the payment for one invoice or one phase of the work. A broad assignment reaches further than a narrow one.
• The price. Some forms tie your claim to the contractor's contract price. If the insurer's estimate comes in lower, the gap between the two numbers sits between you and the roofer, and the form may say the roofer keeps the right to collect it.
• Releases and waivers. Look for words such as release, waive, all rights, or discharge. A release can close off a right you may want later, including a right against your insurer or another party.
• Cancellation. Find out whether you can cancel, how you must do it, and whether cancellation is in writing. A form with no cancellation clause is harder to undo.
• Fees and interest. Some forms add finance charges or late fees if payment is delayed. Those charges can grow while the claim is still open.

What it costs

An assignment form often costs nothing on the day you sign it. What it costs is control. Once the money is directed away from you, you may find out about a short payment only after the check is written, and the reconciliation falls on your side of the table. If the check goes to the contractor first, the contractor may collect before the materials are paid for, which is one reason a lien waiver matters. A lien waiver shows who was paid for what, and an assignment can change the order in which payments move.

Consider the timing too. A roof claim in St. Louis often runs through the freeze and thaw months, when shingle work slows and insurer reinspections take longer. A form that pays the contractor on delivery of materials may sit open for weeks while the weather decides the start date. Ask what happens to the form if the start date slips.

What to ask

Ask for these answers in writing before you sign, and keep a dated copy of whatever you receive.

1. Ask for a blank copy of the form before the crew arrives, and read it at a table, not on a clipboard at the door.
2. Ask which claim, which policy number, and which dollar amount the form covers. If the answer is vague, the form is too broad.
3. Ask whether the form releases any right against your insurer, your lender, or another party.
4. Ask who the check will be written to, and whether your lender will still be named on it.
5. Ask how you cancel the form, and ask for the cancellation in writing.
6. Ask your insurer, in writing, whether it will honor the form and what it needs from you to do so.

A roofer who answers these questions plainly is giving you the information you need to decide. A roofer who asks you to sign first and read later is asking for something you should not give. Take the blank form home, read it with the policy in hand, and call your insurer before you commit to anything. If you have questions about the scope paperwork that goes with the claim, call Keys Roofing at (314) 220-2333.