What a waiver of subrogation does
A waiver of subrogation blocks an insurer from recovering paid losses from a specified party. It comes in two common forms. One is a policy endorsement that lets the insured agree, before a loss, to waive the carrier's future recovery rights against someone. The other is a mutual clause in an underlying contract, where two parties agree that neither will hold the other responsible for damage covered by insurance, and their carriers are bound by that agreement.
Where you see it in Florida
- Commercial leases: landlord and tenant often waive subrogation for property that their own policies cover, so the loss stays with each party's insurer.
- Construction contracts: owner and contractor frequently waive subrogation to the extent a builder's-risk or property policy covers the loss.
- Condominium documents: the declaration may address whether the association's carrier can subrogate against a unit owner, or the reverse, after a loss that crosses unit lines.
Why it matters
A pre-loss waiver usually has to be permitted by the policy or consented to by the insurer. Waiving subrogation without that permission can breach the policy's subrogation condition and put your own coverage at risk. Before you sign a lease or construction contract with a waiver clause, read it against your policy so the two documents do not contradict each other. This is exactly the kind of interplay a pre-loss policy review is meant to catch.