What is a waiver of subrogation?

A waiver of subrogation is a legal term in North Carolina that applies to insurance claims. It is a written agreement that eliminates an insurance company’s right to recover money that was paid out for a claim from another party. Principally, waivers of subrogation allow an insured person to negotiate a settlement between themselves and a third party while protecting their insurance and providing an additional layer of financial protection. In North Carolina, waivers of subrogation are most often used in cases of property damage or personal injury. For instance, if a homeowner has their property damaged in a storm, their insurance provider may cover the costs of the damages but then seek to hold a third party liable for the damages. In such cases, the homeowner could negotiate a settlement with the third party while ensuring that their insurance will still cover the damages. In the event of a dispute between a third party and an insured person, North Carolina law may require the third party to sign a waiver of subrogation. With this form, the third party agrees to give the insured person the financial protection they need without their insurance provider attempting to hold the third party liable. Waivers of subrogation are a legal tool that helps provide assurance to an insured person that their insurance provider will not be held responsible for any damages caused by the third party.

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What is a waiver of subrogation?

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