AOB and lien rights in Florida
By LienGuardian
Sources checked October 12, 2026 at 02:08 UTC
Before starting a Florida repair project, understand what your payment agreement actually gives you. An assignment of benefits, usually called an AOB, concerns insurance benefits. A construction lien concerns a qualifying payment claim against improved real property. Each has its own requirements and limits. Neither guarantees collection.
This guide covers common issues on privately owned Florida repair projects. Your role, contract, licensing, property, payment bond, and any assignment can change the analysis. Use it to organize questions and records, then consult a Florida-licensed construction attorney about your job.
How Florida restricts AOBs
An AOB transfers post-loss insurance benefits. Section 627.7152(13) generally prohibits assignments under residential property policies and commercial property policies within the statute's definition issued on or after January 1, 2023. Attempts covered by that prohibition are unenforceable.
Subsection (11) contains exceptions for certain transfers to subsequent purchasers with an insurable interest, specified powers of attorney, and liability coverage. Older policies also require individual review; their dates alone do not establish a valid assignment.
Where subsection (7) applies, accepting an assignment waives specified payment claims against the insured and bars liens for payments arising from that assignment, subject to statutory exceptions. The waiver survives rescission or a finding that the assignment is invalid. Subsection (7)(b) addresses deductibles, approved betterments, and contracted work performed before rescission.
Have counsel review the policy and agreement before relying on an AOB or assuming an invalid AOB restores lien rights. Florida Statutes § 627.7152.
What a construction lien can do
Section 713.05 provides lien rights for specified parties contracting directly with the owner who meet the statutory requirements. Section 713.06 addresses specified parties without a direct contract with the owner. Eligibility depends on the work and contractual relationship, as well as compliance. A trade label alone does not establish your legal role. § 713.05; § 713.06.
A lien can support recovery of qualifying unpaid amounts. It does not decide insurance coverage or establish that an insurer must pay. Keep your construction payment terms clear and avoid promising an insurance outcome. Contractors also face restrictions on interpreting coverage or adjusting claims without the required public-adjuster license. Roofing contracts have additional notice requirements that this guide does not reproduce. § 489.147.
Start with the contract and your role
For a direct contract exceeding $2,500 to improve a single-family or multifamily dwelling of up to four units, § 713.015 generally requires the statutory lien-law notice. It specifies placement, at least 12-point capitalized bold type, and owner signature and date. It also addresses oral or implied contracts and exceptions for certain owners. Use the statute's actual notice, rather than a shortened summary. § 713.015.
The $2,500 threshold needs care. Section 713.02(5) exempts an improvement with a direct contract price of $2,500 or less from the other provisions of Part I except § 713.05. It does not say that all lien rights disappear. Ask counsel how that exemption and § 713.05 apply to the particular job and claimant. The same section bars liens for contractors, subcontractors, and sub-subcontractors who are unlicensed within the referenced licensing statutes. § 713.02.
Know the separate notice and enforcement steps
These are common statutory milestones, not a complete filing checklist. Special circumstances can alter the process, and calculating service correctly matters.
1. Notice to Owner, when required
Under § 713.06(2)(a), lienors covered by that section generally must serve a Notice to Owner, except laborers. Serve it before starting or within 45 days after first furnishing, and in all events before the owner's final disbursement after the contractor supplies the statutory final-payment affidavit. That earlier payment event can shorten the window. Additional recipients depend on your contractual tier. Direct-contract lienors under § 713.05 do not have this Notice to Owner requirement. § 713.06(2); § 713.05.
2. Record the claim of lien
The usual outside recording deadline is 90 days after your final furnishing of qualifying labor, services, or materials. Certain termination circumstances can produce an earlier deadline. “Final furnishing” excludes correcting deficiencies in previously performed work or supplied materials. An occupancy certificate is not the statutory measuring point. Do not assume a later callback restarts the clock. § 713.08(5); § 713.01(12).
3. Serve the recorded claim
The claim must be served on the owner before recording or within 15 days afterward, using the required service method. Failure or delay can make the claim voidable to the extent statutory prejudice is shown. Recording and service are separate steps. § 713.08(4)(c).
4. Address the final-payment affidavit
A contractor must provide the required affidavit when final payment becomes due and deliver it at least five days before bringing a lien-enforcement action. The statute also addresses termination and contractors with no lower-tier lienors. § 713.06(3)(d).
5. Watch for shortened enforcement deadlines
The usual enforcement period is one year after recording. A Notice of Contest of Lien can shorten it to 60 days after service of the notice. Separately, a § 713.21(4) summons requires the lienor to show cause within 20 days after service and can lead to cancellation. Send either document to your attorney immediately; an ordinary payment reminder may not preserve the lien. § 713.22; § 713.21(4).
Understand the financial risks
A lien's priority depends on the applicable attachment rules and recorded interests. Earlier recorded mortgages or other encumbrances can have priority. Have title and priority reviewed before estimating likely recovery. § 713.07.
Litigation also carries cost risk. The prevailing-party attorney-fee provision can benefit either side. A willfully exaggerated or otherwise fraudulent lien can be unenforceable and expose the filer to damages and criminal consequences. The statute distinguishes minor mistakes and good-faith amount disputes from willful exaggeration. § 713.29; § 713.31.
Keep a usable project record
Save the signed contract, approved changes, invoices, payment history, delivery records, and dated work records. Keep copies of notices and evidence of service together. Record what happened on each work date, including whether a return visit corrected an earlier deficiency. These records help you and your attorney evaluate the claim without relying on memory.
Frequently asked questions
Is a Notice to Owner already a lien?
No. It is a separate notice and does not replace recording a claim of lien. § 713.06(2)(a).
Does every contractor need a Notice to Owner?
No. The requirement depends on the claimant's relationship to the owner and applicable exceptions. See the role-specific discussion above. § 713.05; § 713.06.
Does warranty or corrective work restart the 90-day period?
Do not rely on it. The statutory definition of final furnishing excludes correcting deficiencies in previously performed work or supplied materials. § 713.01(12).
Is there always a full year to sue?
No. A served Notice of Contest or a show-cause proceeding can require much faster action. § 713.22; § 713.21(4).
What should I bring to an attorney about an unpaid job?
Bring the project records listed above, any assignment and relevant policy documents, the recorded claim if one exists, and every notice or court paper received. Include dates of receipt and service. Ask for an assessment of deadlines, enforceability, and recovery costs.
This article provides general information and is not legal advice. It does not determine whether a particular person has a valid lien or insurance claim. Consult a Florida-licensed attorney before relying on an assignment, recording a lien, or calculating a legal deadline.
Sources and last checked
The linked sources are the Florida Legislature's and Florida Senate's online 2026 Florida Statutes. Sections checked: 627.7152; 489.147; 713.01; 713.015; 713.02; 713.05; 713.06; 713.07; 713.08; 713.21; 713.22; 713.29; and 713.31. Last checked October 12, 2026, at 02:08 UTC. Laws and their application can change.