Waiver of Subrogation
Definition:
An agreement preventing an insurer from pursuing recovery from a responsible third party.
Explanation:
This waiver is sometimes included in contracts to protect one party from liability claims. It limits the insurer’s ability to sue others after paying a claim.
Example:
If you sign a lease with a waiver of subrogation, your insurer cannot pursue your landlord for damages caused by their negligence.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.