Subrogation Waiver

A basic right of every insurance company is for them to be able to attempt to get their money back, following payment of a claim (know as Subrogation), from the Third Party responsible for the damage.

Tenants, especially those who reimburse their Landlord for their premiums for the insurance policy providing cover for the buildings they occupy, find themselves in a potentially precarious position as they could be “unfairly” penalised (particularly if they are not named in the policy), by an insurer seeking redress from damage that may have been caused by them.

This clause effectively means the Insurer cannot subrogate against the Tenant unless the damage has been purposefully or intentionally caused by the Tenant.