Subrogation is the right for an insurer to pursue a third party that caused an insurance loss to the insured. For example, if a water heater leaks only 2 months after installation and the escaped water causes property damage the homeowner’s insurance will receive a claim. The homeowner expects the damaged to be repaired per the policy. Depending on the amount of the claim the insurance company will investigate and may ask the water heater manufacturer to pay part or all of the claim. This process is often achieved through litigation or mediation. Experts for both sides are retained to investigate the root cause of the water heater’s failure.
In the case of large losses where millions of dollars are on the table the insurance companies will be motivated to determine if third party negligence contributed to the loss. To add to the complexity multiple insurance companies are often involved, each covering different aspects of the claim.
Our firm has worked directly with insurance carriers on projects involving numerous parties and large dollar values. Our investigations focus on determining the root cause(s) of the loss and how each party contributed. We present our findings to the agent or their attorneys, where appropriate distribution of liability occurs.
For detailed examples of some of our past cases please click here.