SUBROGATION

Subrogation is the process whereby an insured after having paid for a loss or claim, retains the legal right to seek a financial recovery from those it determines to have been responsible for causing the claim to occur. This generally refers to an insurance company's right to sue anyone whom the person it compensated had a right to sue. If the association's insurance paid out a claim because of an owner's negligence, this means the insurance carrier has the right to sue the negligent owner to recover the monies it paid to the association.

Waiver of Subrogation. The named insured's intentional relinquishing of any right to recover damages from another party who may be responsible. Such waivers are frequently found in the insurances provisions in an association's CC&Rs.

Updated by ADAMS KESSLER 1/17/2008