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A standard insurance policy has several clauses and conditions to the coverage it provides, and subrogation is one of those clauses found in many policies. But what is subrogation? Its easiest to explain using an example. Lets assume your new dishwasher catches on fire due to mechanical problems and causes docHub damage to your home. Because fire is a covered cause of loss in your homeowners policy, your insurance company will pay for your loss up to the limits stated in your policy, minus your deductible. Since faulty wiring by the dishwasher manufacturer caused the loss, the manufacturer is ultimately responsible for your damages. Because your insurance company paid you for the loss, they have the right to try and recover their payment for that loss from the dishwasher manufacturer. This is subrogation. Now normally, you would have a claim against the dishwasher manufacturer. However, as soon as your insurance company pays you for your damage, your claim against the manufactu
