What is a subrogation clause?

A subrogation clause is a common provision found in insurance policies. This clause allows an insurance company to step into the shoes of a policyholder in order to seek reimbursement from a third party who is responsible for injury or damage to the insured. This means that the insurance company can take legal action against the responsible party in order to be reimbursed for any money they have paid out in a claim to the policyholder. In New Hampshire, insurers can seek direct recovery from a third party if they paid out money to an insured who was injured or experienced property damage because of the responsible party. The insurance company may also try to recover the costs of medical expenses, repairs or other damages from the third party for the policyholder. It is important to note that before any legal action can be taken, the insurance company must first receive the written consent of the policyholder. Subrogation clauses give insurance companies a legal right to seek reimbursement from a responsible third party in order to help alleviate the financial burden that can come with insurance claims. This helps to ensure that policyholders are able to recover faster and with less stress.

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What is a subrogation clause?

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