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A Waiver of Subrogation protects each party from being sued for the recovery of damages by third parties with a claim against the other party. Waivers of Subrogation are common in leases and protect each respective part from being sued by insurance companies on behalf of either the lessor or the lessee. Sounds confusing - so here is a quick example: Let's say that a lease contract is signed waiving the right of subrogation for both parties. Once the tenant moves in there is a fire, and the apartment he is leasing burns down. The insurance company cannot sue the tenant for negligence because the landlord waived the right of subrogation. It is important to note that "waivers of subrogation" can negate ones insurance policy so make sure and check prior to having one signed.
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