What does Subrogation Principle mean? Read on to discover the definition & meaning of the term Subrogation Principle - to help you better understand the language used in insurance policies.
The subrogation principle is a term for a legal right of most insurance companies. An important part of most property insurance policies, it states that if a third party damages the insured's property, the insured has to transfer their right to sue the third party to their insurance company before the insured can receive payment for their insurance claim. By accepting the payment, the insured agrees to transfer over their right to sue.
We hope the you have a better understanding of the meaning of Subrogation Principle.