What is a Subrogation Claim? Every insurance policy has a subrogation clause which allows the insurance company to recoup money that they paid out on a claim if it is discovered it is someone else’s fault. When it is, someone is liable and it shouldn’t impact your rates if you file a claim. When you file a claim with your own insurance company you have more rights and better service because you are dealing with your own insurance company where you have a contract for them to indemnify you.
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An insurance company is no different from others. If they can do less work they probably will. If there is a liable party, your carrier may ask you to file directly through the liable party’s insurance company. When you file a first party claim (one against your own carrier) your insurer should work with you to get you paid directly from your insurer and within the terms of what your coverage affords (such as additional living expenses and replacement costs). When your carrier is finished with your claim they can subrogate against the liable party’s carrier. Even though your insurance company can subrogate against the wrongful party to be compensated for what was paid out on your claim, that does not mean that your claim will be any easier. Getting paid on an insurance claim can be difficult and there is no better entity to understand this than insurance companies. That is why in your first party claim your loss will be verified by several parties and supporting documentation will be required. This is done in order to make sure that the claim is paid when it is presented to the third-party carrier. Because of this an independent insurance claims adjuster is helpful on these kinds of claims. Hiring someone who knows what exact documentation you might need can speed the process and help make sure you are paid fairly. Many times, we hear from people who believe that they have a subrogation claim when there is not one. For example, your neighbor’s tree falls on your house. You believe It’s your neighbor’s tree so it’s his or her fault. Not necessarily. If your neighbor was negligently cutting it down and it hit your home then it might be a subrogation claim. Source: https://www.brown-ohaver.com/blog/what-is-subrogation-claim/
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