Waiver of Right of Recovery
property you manage would most likely be covered by the owner's
property insurance policy. However, the insurance company, as part
of the claim settlement, would assume the owner's legal rights (becomes
subrogated to their rights)
collect from any person who was responsible for the damage.
Insurance companies routinely subrogate to
recover insurance payments.
A person may
waive the right to recover as part of a contract. This must be done
before any loss occurs.
including a “Waiver of Right of Recovery” clause in all
property management contracts. By doing so, the property owner waives
the right to legal action against you for property damage that occurs
during your management of their property. If your client does not
have this right, then their insurance company cannot have it either.
Consult with your attorney.