One of the most common advantages of a waiver of subrogation is avoiding costly and time-consuming litigation and negotiation.
Contract parties, such as a landlord and tenant, can avoid conflict with these provisions.
They also stop some people from being held accountable for losses that they didn’t cause.
Mutual waivers of subrogation, in which both the landlord and tenant waive their rights to recover from each other for any insurance-covered loss, are included in some leases.
A waiver of subrogation may be overruled by existing statutory law in some states, allowing claims to be brought;
However, limitations on liability may absolve negligent defendants of responsibility in the majority of states.
The waiver of subrogation clause prevents the insurer from suing the landlord for the amount paid to the insured or on behalf of the insured in settlement of a covered claim, resulting in this additional expense.
