Louisiana generally prohibits assigning post loss property insurance benefits to a roofing contractor or other service provider.
Louisiana Revised Statute 22:1275 says a person may not solicit or accept an assignment, in whole or in part, of post loss insurance benefits under a residential or commercial property insurance policy. Louisiana law states that such an assignment agreement is against public policy and void, subject to limited statutory exceptions.
Insurance paperwork can become complicated quickly after roof damage.
Homeowners may encounter documents involving estimates, construction contracts, insurance proceeds, claim information or authorization to perform repairs.
One term that historically appeared in property insurance restoration work is Assignment of Benefits, commonly shortened to AOB.
Louisiana has taken a direct approach to these agreements.
What Does “Assignment of Benefits” Mean?
Under Louisiana law, an assignment agreement involving a property insurance claim can include an instrument through which post loss benefits are assigned, transferred or otherwise acquired, in whole or in part, by a person providing services to the damaged property.
The statute specifically recognizes services such as inspecting, protecting, repairing, restoring or replacing the property and mitigating further damage.
It can also involve rights connected to insurance proceeds or a right of action against the insurer.
Post Loss
The restriction concerns benefits associated with property damage after a loss has occurred.
Insurance Benefits
The law covers benefits, insurance proceeds and certain rights associated with the property insurance claim.
Service Providers
Roofing, repair, restoration and other property service providers are directly within the type of arrangement addressed by the law.
Louisiana Law Prohibits Most Post Loss Assignments
Louisiana Revised Statute 22:1275 states that a person shall not solicit or accept an assignment, in whole or in part, of any post loss insurance benefit under a residential or commercial property insurance policy.
The statute goes further and declares such assignment agreements against public policy and void.
A property service provider cannot simply take over the homeowner's post loss insurance benefits.
Louisiana's prohibition applies to residential and commercial property insurance claims and includes assignments made in whole or in part.
Review the statute directly through the Louisiana State Legislature .
Louisiana Reinforced the Rule for Contractors in 2026
The prohibition is no longer located only in Louisiana's insurance statutes.
Louisiana Act 757 of 2026 amended R.S. 37:2159.1, the contractor statute governing prohibited conduct involving property insurance.
The current contractor framework specifically lists Assignment of Benefits as prohibited conduct and incorporates the same general restriction against soliciting or accepting post loss benefits.
Act 757 became effective August 1, 2026.
Why Does an Assignment of Benefits Matter to a Homeowner?
A roofing contract and an insurance claim are separate relationships.
A homeowner may hire a contractor to inspect, repair or replace a roof without transferring ownership of the homeowner's insurance benefits or claim rights to the roofing company.
That separation is important because the contractor's responsibility is the construction work.
The homeowner remains the insured party working with the insurance company concerning the property claim.
Normal contractor relationship
- Contractor inspects the physical roof
- Contractor documents visible conditions
- Contractor prepares a construction estimate
- Homeowner decides whether to hire the contractor
- Contractor performs the agreed roofing work
AOB issue
- Service provider seeks assignment of post loss insurance benefits
- Insurance proceeds or claim rights are transferred to the service provider
- The arrangement attempts to give the provider rights belonging to the insured
- Louisiana law prohibits solicitation or acceptance of the assignment
- The prohibited assignment is considered void
What Might an Assignment of Benefits Look Like?
“Wall2Wall will replace the roofing system described in this construction agreement for the stated contract price.”
A document attempts to transfer the homeowner's post loss insurance benefits, proceeds or claim rights to the contractor or service provider.
Louisiana law generally prohibits a person from soliciting or accepting that post loss assignment under a residential or commercial property insurance policy.
An Assignment of Benefits Is Not the Same Thing as Hiring a Roofer
Homeowners should not assume that every roofing contract connected to an insurance loss is an Assignment of Benefits.
A contractor still needs a legitimate agreement authorizing the construction work.
Louisiana law also requires contractors undertaking certain insured property damage work to provide a good faith estimate containing itemized and detailed costs of services and materials before providing the repair or construction agreement.
The key issue with an AOB is the transfer of post loss insurance benefits or rights, not simply the homeowner hiring a contractor to perform roofing work.
Does This Mean a Roofer Can Never Receive Payment Connected to Insurance?
No. The prohibition against Assignment of Benefits should not be read as meaning that a contractor cannot be paid for legitimate roofing work simply because insurance proceeds are involved.
The legal issue addressed by the AOB statute is the assignment or transfer of post loss insurance benefits and rights.
A homeowner can still enter into a roofing contract and pay a roofing contractor for work performed.
Questions involving the handling of a specific insurance payment, check, mortgage company endorsement or policy requirement should be directed to the appropriate insurer, mortgage company, financial institution or legal professional.
Are There Exceptions to Louisiana's AOB Prohibition?
Yes. R.S. 22:1275 contains specific statutory exceptions.
The prohibition does not apply to certain assignments, transfers, pledges or conveyances granted to a federally insured financial institution, mortgagee or subsequent purchaser of the property.
The statute also contains an exception involving liability coverage under a residential or commercial property insurance policy.
Louisiana law separately states that the AOB prohibition does not prevent an attorney from collecting a permissible contingency fee for an action related to a property insurance claim.
These exceptions are specific. Homeowners should not assume an ordinary roofing contractor falls within one of them.
What Happens If Someone Violates the Assignment of Benefits Law?
Louisiana R.S. 22:1275 states that a violation of the prohibition is considered an unfair or deceptive trade practice.
The statute makes violations subject to the penalties provided in Louisiana R.S. 22:1969.
Act 757 also places Assignment of Benefits directly into the contractor prohibited acts statute, creating an additional contractor compliance issue for companies performing roofing and construction services.
What Should a Homeowner Check Before Signing Roofing Paperwork?
Know what document you are signing.
Determine whether it is an inspection authorization, construction estimate, roofing contract or another type of agreement.
Look for insurance rights language.
Read carefully for language discussing assignment, transfer, insurance benefits, proceeds or rights against an insurer.
Make sure the construction scope is clear.
A legitimate roofing agreement should clearly explain the work, materials and pricing associated with the construction project.
Do not rely on a verbal explanation alone.
Read the actual written agreement before signing and keep a copy of the documents you execute.
Ask the right professional when something is unclear.
Contract, insurance coverage and legal questions should be directed to the appropriate licensed professional.
Be Careful With “We Handle Everything” Language
A homeowner may hear a contractor say that signing one document lets the company “handle everything with insurance.”
Louisiana law now places clear boundaries around contractors acting as public adjusters, interpreting insurance coverage and accepting Assignment of Benefits.
A roofing contractor can inspect the roof, document physical damage, prepare a construction estimate and perform the roofing work.
The contractor does not need ownership of the homeowner's post loss insurance benefits to perform those construction services.
Assignment of Benefits Is Part of a Larger Louisiana Contractor Framework
Louisiana's property insurance rules do not address AOBs in isolation.
Contractors also face restrictions involving public adjusting and insurance policy interpretation.
Learn more in our guide: What Can a Roofing Contractor Do During an Insurance Claim in Louisiana?
Louisiana also regulates deductible waiver arrangements. See: Can a Roofer Waive Your Insurance Deductible in Louisiana?
And if your roofing estimate differs from the carrier's estimate, read: What If the Insurance Adjuster's Estimate Is Lower Than the Roofer's Estimate?
Why This Matters to Baton Rouge Homeowners
Large wind, hail and hurricane events can bring a high volume of contractors into Baton Rouge, Prairieville, Gonzales, Denham Springs and surrounding South Louisiana communities.
Homeowners may be asked to sign documents quickly while also dealing with temporary repairs, insurance calls and damage to their property.
The fastest document is not necessarily the clearest document.
Louisiana's AOB prohibition gives homeowners another reason to slow down, understand the roofing agreement and know exactly what rights are and are not being transferred before signing anything.
Wall2Wall's Role Is the Roof
Wall2Wall Roofing & Construction does not need an assignment of your post loss insurance benefits to inspect or repair your roof.
Our role is to inspect the physical roofing system, document conditions, explain the construction work we recommend and provide clear pricing for that work.
If repair is appropriate, learn more about our roof repair services .
If replacement is needed, explore our roof replacement services .
For damage following severe weather, visit our storm damage roofing page.
Need a roofing contractor, not control transferred away from you?
Wall2Wall can inspect the roof, explain the construction work we recommend and provide a clear estimate while keeping our role focused on the roofing project.
Official Louisiana Sources
This guide was prepared using primary Louisiana government sources. Homeowners can review the current statutes and enacted legislation directly below.
