Subrogation Receipt
Definition:
A document signed by the policyholder acknowledging the insurer’s right to recover from a responsible third party.
Explanation:
This receipt confirms the insurer can pursue legal action in the homeowner’s name to recover claim payments. It does not mean the homeowner is giving up all rights.
Example:
After your insurer pays for fire damage caused by faulty wiring, you may sign a subrogation receipt so the insurer can sue the electrician.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.