Subrogation

Subrogation is the process by which your insurance company, after paying your claim, pursues recovery from the party responsible for causing your loss.

How It Works: 1. You file a claim for covered damage 2. Your insurer pays your claim 3. Insurer investigates who was at fault 4. Insurer pursues the responsible party 5. If recovered, you may get your deductible back

Examples:

• A contractor's faulty work causes a fire; your insurer pays your claim then sues the contractor
• A neighbor's tree falls on your roof; your insurer may pursue their homeowner's insurance
• A defective appliance causes damage; your insurer may pursue the manufacturer

  Your Responsibilities:

• Cooperate with your insurer's investigation
• Don't sign releases with third parties without insurer approval
• Provide requested documentation
• Don't accept payment from at-fault party without informing insurer

  Deductible Recovery:

If subrogation is successful, your insurer may reimburse your deductible—another reason to document everything carefully.