Subrogation

Subrogation is the legal process where your insurance company ‘steps into your shoes’ to seek reimbursement from a third party who caused your loss. For example, if a neighbor’s tree falls on your house due to their negligence, your insurer pays your claim first and then uses subrogation to get that money back from the neighbor’s insurance. This process is important because it can lead to the recovery of your deductible, which the insurance company will return to you once they are successfully reimbursed.