What is subrogation

4/4/2019 (Permalink)

Subrogation comes from the Latin word subrogoree which means “to substitute”. In the insurance world it is used to substitute one insurance company for another. Assume you hire a plumbing company to change your bathroom sink and they forget to tighten a fitting. If this fitting later springs a leak and floods your home, the plumbing company may be liable for all damages. This substitution would involve sending the claim to the plumber’s insurance company. Often your insurance company will pay the claim and then send the bill to the plumbers company to get their money back. Or sometimes the other insurance company will just handle the claim directly.

SERVPRO of Manistee, Ludington, and Cadillac employees are certified in subrogation and can help document subrogation claims so they do not cost you any money or affect your future rates. Subrogation claims can also originate from failed equipment or installation. If an appliance, water heater, or furnace fails or causes damage, the loss can sometimes be transferred to the manufacturer or installer. It is important that all details of subrogation claims be properly documented and all evidence protected.

Make sure all contractors that you hire to work on your home are licensed and insured or you may be liable for damages they cause. For example, if you hire someone to shovel your roof and they or one of their employees falls off the roof and gets hurt, you may be liable if they are uninsured. Or if they damage the roof, your insurance company may deny the claim. As you can see, the simple question of who is paying the claim can be quite complicated to answer. Always make sure you have an experienced agent to help get you into the right policy for your circumstances. If you have questions you can always call your agent or the professionals at SERVPRO of Manistee, Ludington, and Cadillac.

Once coverage is determined what is the next step?

See our next blog for the answer that that question.