As a homeowner, can insurance subrogate from me?

As a homeowner, insurance subrogation can apply to you. Subrogation is the process by which an insurance company that has paid a claim on behalf of its insured seeks to recover the amount paid from another party that is responsible for the loss or damage.

If you have a homeowner’s insurance policy, and you file a claim for damages covered under the policy, your insurance company may pay the claim and then seek reimbursement from the responsible party.

For example, if a neighbor’s tree falls on your house and damages your roof, your insurance company may pay for the repairs and then seek reimbursement from the neighbor’s insurance company or the neighbor themselves.

In some cases, subrogation may be pursued against the homeowner directly if the homeowner caused the damage through their own negligence or intentional actions. For example, if a homeowner accidentally starts a fire in their home and the fire damages a neighbor’s property, the homeowner’s insurance company may pay the claim and then seek reimbursement from the homeowner for their negligence.

It is important to note that subrogation is a standard practice in the insurance industry and is typically outlined in your insurance policy. Most insurance policies contain a subrogation clause, which gives the insurance company the right to pursue subrogation if they pay a claim on your behalf.

In summary, as a homeowner, it is possible for insurance subrogation to apply to you if your insurance company pays a claim on your behalf and then seeks reimbursement from another party or from you directly if you are found responsible for the damage. It is important to understand your insurance policy and any subrogation clauses that may be included.

Asked April 22, 2013 by Andy Villena