Direction to pay

Definition

A signature naming the restorer as a payee, which Florida no longer lets a homeowner turn into an assignment.

Why It Matters

Florida ended the instrument much of this trade was built on. On any residential or commercial property policy issued on or after the first of January 2023, a policyholder may not assign any post-loss benefit in whole or in part, and an attempt to do so is void, invalid and unenforceable. The definition that ban works from reaches any instrument by which post-loss benefits are acquired in any manner by somebody inspecting, repairing or restoring the property. A direction that only names a payee is narrower, and a Florida appellate court invalidated an assignment sitting beside one without disturbing the payee designation, but the same test is wide enough to reach an instrument passing benefits through. California voids the carrier's anti-assignment clause after a loss instead. Read the policy dates before valuing the folder.