Glossary

Subrogation

The insurer's right, after paying your claim, to step into your place and recover that money from whoever caused the loss.

Also called: right of recovery, insurer recovery

Subrogation lets your insurer step into your shoes after it pays you. Say a plumber's faulty fitting floods your kitchen, a neighbor's contractor starts a fire that spreads to your fence, or a defective water heater fails. The insurer pays your covered loss, then goes after the responsible party, or that party's insurer, to get its money back.

The recovery effort is separate from your claim, and your part is mostly to cooperate. When it succeeds, many insurers reimburse your deductible, in full or proportionally; state rules vary. Say you paid a $2,000 deductible on a $20,000 loss. If the insurer recovers the full $20,000, you would typically receive the $2,000 back (hypothetical).

Two things to watch. First, the standard ISO form lets you waive rights of recovery in writing only before a loss, and afterward it expects you to sign related papers and cooperate. Do not sign a release or settle with the at-fault party without telling your insurer, because that can damage its recovery rights and your coverage. Second, keep the evidence: the failed pipe fitting, the burned appliance part, the photographs. The guide on your duties under the policy lists what the insurer can expect from you, and documenting damage explains what to save.

Last reviewed October 10, 2026

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Related terms

Deductible The amount of a covered property loss you pay yourself before the insurer pays the rest, shown on your declarations page as a dollar figure or a percentage. Salvage What remains of damaged property after a loss, and the insurer's option to take it or deduct its leftover value once the claim is paid. Personal liability (Coverage E) Coverage that defends you and pays damages if you are legally responsible for injuring someone or damaging their property, at home or away from it. Duties after loss The steps a homeowners policy requires after damage occurs: reporting it, protecting the property, documenting the loss and cooperating with the insurer. Adjuster The person who investigates a reported loss, decides what the policy covers and how much it will pay, and negotiates the settlement.

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Washing machine, water heater and dishwasher leaks A sudden appliance leak is usually covered for the water damage and tear-out, but not for the failed appliance. Where slow leaks, drains and wear change that. Arson, staged losses and fraud investigations How insurers and fire investigators test a suspicious fire or theft, what the intentional loss exclusion does, and what to do if your claim is investigated. Old wiring, electrical fires and insurability A fire from bad wiring is a covered fire loss, but the wiring is not, and old systems can get a home declined or nonrenewed. What insurers ask for. Falling tree damage: who pays and when Your own homeowners policy pays for a tree that hits your house, whoever owned the tree. Tree removal is capped, and the tree itself is rarely covered. Fire and smoke damage: how homeowners insurance responds Fire is a covered peril on every standard homeowners form. What gets paid, from which coverage, and where smoke, soot and underinsurance trip up claims. Policy conditions: your duties under a homeowners policy What a standard HO-3 requires of you after a loss, and what the insurer owes back: notice, proof of loss, suit deadlines, fraud and cancellation.

Related insurers

Mercury Insurance Los Angeles-based, NYSE-listed insurer selling home insurance through independent agents in 10 states; California's No. 3 homeowners group in 2025.