Subrogation refers to the process an insurance company uses to seek reimbursement from the responsible party for a claim it has already paid.
Subrogation matters to you if:
- You have a covered loss, and
- You submit a claim to your insurance company, but
- Another party is actually responsible for all or part of the damages (i.e. you have a car accident and the other driver caused the accident, or if damage to your home was caused by a faulty appliance)
In this case, your insurance company may pay your claim, and then seek reimbursement from the other party. This would depend on the circumstances surrounding the loss, the laws in your state, and your policy provisions.
If your company decides to pursue subrogation, the company will work to recover the damages from the responsible party. Damages may involve costs paid by you and the insurance company. Costs paid by you usually means your deductible, but could include amounts over your policy limits not paid by your insurance company. This would depend on the laws in your state and the specific circumstances surrounding the loss.
The subrogation process may also be used if you are at fault for damages. In this case, the other party and/or their insurance company would make a claim against you, usually directly to your insurance company. Your company will review the facts of investigation to determine if you are liable for the damages. Your company may make payment to the other company if you have coverage and it is determined that you would be legally responsible for all or part of the damages. Keep in mind that often times liability is not clear cut. In some cases, both parties may be partially responsible. Dependent on the laws in your state, both parties may share responsibility for payment of damages. For example, one party may be 40% responsible, and the other party may be 60% responsible. This could mean that both companies make subrogation claims against each other, and each company pays their respective portion of the other party’s claim.
In all cases, your participation and cooperation with us in the investigation phase of the claim process is important. Your assistance can help to establish important facts, and preserve evidence, and may help to accelerate the recovery process.
Reimbursement When Money is Recovered
If money is recovered, and part of the recovered amount was paid by you, (you paid your deductible, for example, but it was the other party’s fault) a reimbursement check will be issued. The reimbursement check is usually issued when money is received. Please note that practices vary based on the specific laws for your state.
The amount to be reimbursed is based on the amount claimed and the amount recovered. The amount claimed through subrogation depends on the amount each party was at fault. The amount recovered usually is divided proportionally between the insurance company and the insured, after expenses. This could vary based on the laws in your state.
How Reimbursement Amounts are Calculated
Dependent on the laws in your state, you may be fully reimbursed for your deductible if:
- The other party was 100% at fault
- The other party paid the damages claimed in full
- There were no collection expenses (i.e. collection agency) to recover the money.
Often times though, it is not that simple. Based on the different factors that come into play, the calculation of the reimbursement amount can become quite complicated. The reimbursement of your deductible depends on several factors, including the amount recovered, the amount claimed (based on the amount the various parties were at fault), and state laws.
Generally, you would receive reimbursement of your deductible equal to your proportion of the total amount claimed to the total amount recovered, net of expenses. However, precisely how the reimbursement amount is determined varies by state.
These examples outline general rules that apply in many states—please discuss the specifics of your case with your subrogation claim representative.
Example 1: Other party is 100% liable, but only paid part of the amount
The total amount of damages paid is $10,000. The other party was 100% responsible for the damages. Subrogation claim is for $10,000.
- You paid $1,000 and your insurance company paid $9,000.
- Your proportion is 1/10 or 10% of the total amount claimed—$1,000.
- The amount actually collected is $5,000. There were no collection expenses.
- You are reimbursed for $500, or 10% of the amount collected.
- Your insurance company is reimbursed for $4,500.
Example 2: Other party is partially liable; only paid part of the amount
The total amount of damages paid is $1000. The other party was 60% responsible for the damages. Subrogation claim is for $6,000.
- You paid $1,000 and your insurance company paid $9,000.
- Your proportion is 1/10 or 10% of the total amount claimed—$600.
- The amount actually collected is $3,000. There were no collection expenses.
- You are reimbursed for $300, or 10% of the amount collected.
- Your insurance company is reimbursed for $2,700.
Questions? Your Claims Representative Can Help.
Subrogation can be complex and non-intuitive. If you have questions, please let your claims representative know.
IICRC Certified Firms have earned the right to display the cleantrust logo as a symbol of quality. In order to achieve IICRC-certified status, firms must meet a rigorous list of standards in business ethics and expertise. All IICRC Certified Firms must:
- Present accurate information to consumers and conduct business with honesty and integrity.
- Require a technician on all jobs who has been formally trained and passed all required tests.
- Require a continuing education program to keep technicians up-to-date on the latest changes in the industry.
- Maintain liability insurance to protect all parties in the event of an accident.
- Maintain a written complaint policy and agree to Better Business Bureau or similar arbitration to resolve disputes, and accept the conclusions and recommendations of arbitration.
The IICRC actively has relationships with fiber producers, carpet and fabric mills, furnishing manufacturers and retailers, and others affiliated with the industry. The use of cleantrust service professionals is specified in leading manufacturers’ maintenance brochures and warranties.
When it comes to cleaning, restoration and inspection, the IICRC writes the books
As an ANSI-accredited standard-development organization, the IICRC has led the way in establishing the main industry standards and reference guides for professional carpet cleaning, upholstery and fabric cleaning, water damage restoration and mold remediation.
Each IICRC standard takes years to develop and the coordination of several experts in the field, including allied tradespersons; manufacturers; international, national and regional trade associations; individual or franchise professionals; cleaning, inspection and restoration industry organizations; insurance industry; training schools; contractors; and public health professionals.
These standards are reviewed and updated at least every five years. Many of these fields, such as the water damage restoration field, change rapidly and those who are certified keep up with the advancement of the science and generally accepted practices of the industry.
The IICRC helps keep homes and businesses healthful
According to the Environmental Protection Agency, the average person spends 90 percent or more of their time indoors, where levels of pollutants may be two to five times (and occasionally more than 100 times) higher than outdoor levels.
This makes it extremely important to perform regular maintenance inside your home or business. In addition to vacuuming, cleaning and checking for water damage on a regular basis, using a certified technician for cleaning will help extend the life of your flooring and upholstery and ensure that your home or business is healthful for those who live and work there.Share on Facebook
Royal Water Damage Philadelphia, PA
Royal Water Damage Services in and surrounding
Flood Water Extraction & Water Damage Services:
Fire and Smoke Services:
Sewage Intrusion Cleanup:
|Royal Water Damage offers flood water extraction & water damage services, fire and smoke services, sewage clean up, and mold remediation in and around Philadelphia. We are a full service company available 24 hours a day, 7 days a week. Technicians are available in your neighborhood. Call today for your no-obligation, free estimate!|
If you have been confronted by water damage in your house or commercial property, you will be best advised to hire the services of a professional fire and water restoration company. Though water damage restoration is something that you can achieve on your own, there is too much at risk to take it up as a do it yourself project.
Here are some highlights about the services that a well established fire and water restoration company like Royal Water Damage will be able to provide.
•Available 24/7 – The good fire and water restoration company will operate throughout the day and night. Time is of the essence when it comes to water damage restoration and lost time will often result in dramatically increased losses and additional restoration expenses. Shut off the water supply that caused the flooding and call a professional water damage repair company as soon as you can.
•Expert help with insurance claims – The fire and water restoration company is more than just a professional service to restore your home. The Royal Water Damage will often award you an insurance specialist who will help you with the insurance claims process along the way. Ideally, claiming insurance should be easy for homeowners who have suffered property damage although the reality is that the insurance company will do anything to give you a check with a lower amount than required. Having professional help in the form of an insurance specialist will save you a lot of stress and effort and will also get you that check that will cover all the restoration expenses.
•Professional equipment – fire and water restoration company will have several commercial grade machines such as dehumidifiers, blowers, truck mounted water extraction units, portable water extraction units, moisture gauges, humidity gauges and so on that will help them remove the water and restore your property in the fastest way possible. If you approached the process on your own, it will take you a very long time as you will generally have just one dehumidifier or just one blower which might not even be powerful enough to do the job in the first place.
•Technical knowhow – This is where restoration companies offers the most value. It will take you several hours of research and learning to figure out the best restoration plan for you house while a professional restoration company will often have years of experience on their hands. Their experience and their expertise will allow them to immediately go to work on restoring your property in the most time efficient and cost efficient manner. They will also be able to advise you about potential problems with the construction of your house that might lead to future water damage problems.
Thus, in conclusion, it is advised that you call for the services of a fire and water restoration company if you haven’t done so already. The sooner your call, the lesser your losses will be. A good fire and water restoration companies will also guarantee you that their repair estimates will be accepted by the insurance company which means that you have almost nothing to lose by hiring professionals.
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Homeowners insurance protects your home, its contents, and, indirectly, your other assets in the event of fires, theft, accidents or other disasters.
A standard homeowners policy (known as an HO-3 policy) will protect you from things like fires and fallen trees. Notice how we didn’t mention floods or earthquakes—those events are specifically not covered by a standard policy and require additional coverage. Homeowners in some areas of the country may be required by their mortgage company to carry these kinds of policies.
A standard policy will also protect your possessions from said disasters as well as theft. But a standard policy is not a blank check: There’s a limit to how much you’ll be compensated. If you have specific items of value, such as jewelry or artwork, you can pay a little extra each year to insure them for their full replacement value.
Now, if someone is on your property and slips and falls and sprains his ankle, he might sue you for his medical expenses. Homeowners insurance covers your liabilities in this situation as well. And like the examples mentioned above, you can pay more for extra coverage. Homeowners insurance isn’t required by law, like auto insurance. But mortgage companies usually require you to obtain a policy before they’ll give you a loan.
How Much Coverage Do You Need?
Your home insurance policy should cover enough to entirely rebuild and furnish your home were it wiped off the map. Ask a home builder to walk through your home and give you an estimate of what it would take to rebuild; that figure should be the basis for how much replacement coverage you’ll need. Be sure to point out any unique and/or expensive details that would add to the replacement cost.
Once you’ve determined the replacement cost of your home, you’ll need to know what kind of coverage you want. There are a few key terms here:
Guaranteed Replacement Cost Coverage. This means that the insurer will pay for the rebuilding of your home no matter the cost. These policies are hard to find these days.
Extended Replacement Coverage Many insurers offer coverage that caps the payout at around 125% of your home’s insured value.
Inflation Guarantee (or Guard). This feature makes sure that your home’s insured value stays current with the marketplace.
If you get a reliable appraisal, extended replacement coverage and an inflation guarantee, you should be in good shape. The appraisal provides a realistic starting figure and the inflation guarantee makes sure that your home’s price stays current. The 125% coverage means that, even if construction prices outpace inflation, they probably didn’t outpace it by 25%, so you should have enough money for whatever work you need done.
One last thing: The law requires you to have flood insurance if you live in an officially recognized high-risk area. To find out your flood risk and to find plans (which are offered by the government), go to floodsmart.gov.
When it comes to protecting your possessions, you may want more coverage than your standard policy allows. If you have anything of exceptional value (a family heirloom, a piece of art, jewelry, etc.), you should insure it separately. Insurers will charge extra for this coverage (something like an extra $10 on your monthly premium per $1,000 of value insured), but it pays to be covered.
Also keep in mind that there are two different kinds of coverage when it comes to personal articles. There’s “actual cash value” and there’s “replacement cost.” You want coverage for replacement cost. “Actual cash value” is what you’d get if you sold your valuable today — a lower amount than what you initially paid. “Replacement cost” pays you the amount of money you’d need to buy a brand-new item to replace your old one.
Say a guest stays at your home and slips on the floor and sprains his ankle. He decides to sue you. Your homeowners policy includes liability coverage in case you lose the court case. Generally speaking, standard policies offer $100,000 to $300,000 of liability coverage.
Supplemental liability coverage can boost your protection to $1 million or more. If you don’t own a car, adding that kind of coverage can be relatively cheap—less than $100 per year—and isn’t a bad idea. If you do own a car (putting you at greater risk for causing damage to people and property), expect to pay $300 to $400 a year. Check out your auto policy to see what kind of coverage you already have.
Shopping for a Homeowners Policy
There are three kinds of home insurance companies and salespeople:
Direct sellers, who sell directly to consumers (GEICO, Progressive and USAA fall into this category).
Captive agents, who only sell one company’s insurance products (for example, State Farm and Allstate agents).
Independent insurance agents, who sell policies from many different companies.
It’s possible that all of these groups will deny your insurance application for anything from the risky pool of alligators in your backyard or the tornado that runs through your property every year. Don’t despair. Many states have state-sponsored insurance programs for the hard-to-insure. Search for your state’s FAIR (Fair Access to Insurance Requirements) plan if you’re having a tough time with the traditional insurers.
Like auto or health insurance, your homeowners insurance has a deductible (the amount you must pay before coverage kicks in). Like those other policies, you should opt for the highest deductible you can afford. If you do, the cost of your insurance premium (the monthly bill you pay) will surely be lower. Plus, a low deductible forces your insurer to cover more of your costs — costs they pass on to you in the form of increased premiums.
Remember: You should not use insurance to cover every conceivable expense, just the big ones. If reinstalling a gutter will cost you $200, pay the $200 — don’t start filing claims for it. Insurers hate it when you file too many claims, and may raise your monthly premium or even cancel coverage because they’ll view you as too risky. It’s not about gutters—you want the insurance when you have to pay for a whole new roof.
A good rule of thumb to follow: If you can fix anything for less than $1,000, don’t file a claimShare on Facebook
Sewage Cleanup Services – 215-657-2244
The dangers associated with sewer cleanup should not be taken lightly. A Sewage spill contains pathogenic agents and biohazards in the form of bacteria and fungi that can be spread to humans through ingestion, skin contact, and inhalation. Contact these agent types can result in diseases such as gastroenteritis, dermatitis, infectious hepatitis, asthma and more. For a complete list of diseases contact the Department of Health.
A successful sewage cleanup requires a team of professionals who are trained in sewage clean-up projects and are certified by the Institute of inspection, cleaning, and restoration certification standards or IICRC standards. These standards provide the assurance of a cost effective, complete and safe restoration service. IICRC standards and a timely response effort will provide the guidelines to classify the spill as sanitary or unsanitary, limit the property damage, address health and safety laws and allow your cleanup to proceed in a smooth and cost effective manner.
Sewage Cleanup & Remediation:
- Assessing Sewage Damage
- Sewage Water Extraction
- Structure and content restoration
- Containment / Quarantine / Decontamination
- Structural Drying and dehumidification
- Utilizing affective Odor Neutralizers
- Complete sanitation work
Remember that the health and safety issues involved with a “black water” sewage spill are of the utmost concern. Do not wait to call Royal Water Damage, we are properly equipped technicians to contain and clean up a potentially very dangerous “class three” spill. Call us today for a free estimate. 215-657-2244
The earlier you contact a water removal company, the higher. Time is critical. Once water is extracted, drying is imperative. Quick water extraction and drying will help prevent further damage to property. The longer it takes to take out the water and dry the involved area, more water damage occurs, and odds are that mold has begun to grow. Drywall can happen to be dry and unaffected but, if drywall was wet greater than 2 hours it should be replaced.
Mold can be found almost anywhere and it can grow on nearly every surface, as long as moisture and oxygen can be found. When too much moisture accumulates in buildings or on building materials, mold growth usually occur, particularly if the moisture problem remains undiscovered or unaddressed. Many mold troubles remain hidden from site for a long period. They are discovered when someone using a sensitivity to mold spends in time the building and gets sick.
The first step in flood damage restoration is water extraction. Royal Water Damage can send a team immediately, whenever of day, to help you as soon as you need them. When possible, find and stop the initial source of the water (plumbing, faucet, etc). Remove as much water as you can.
It takes a great deal to restore smoke-damaged possessions: far more than a vacuum and scrub brush. Royal Water Damage is skilled in this kind of detailed work. The initial step to restoration is the removal of soot. A commercial-strength vacuum can be used to clean and extract soot. Individual items must get hand-cleaned for soot removal. Whilst the restoration is happening, the property will be open whenever you can for clean air. After the soot is removed, smoke residue must be cleaned. An ozone generator helps extract smoke particles in your home office and belongings. A thermal fogger also draws the smoke out.
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Actions You Can Take
Shut Down Affected Utilities
- Water Source: Stop the source of the water. Turn off your outside water main, or call a plumber or other qualified tradesman to stop the source of water flow. Contact your local utilities department if you can’t find how to turn off the water main.
- Electrical: Disconnect all power to affected areas. Do not operate your TVs or other electrical appliances while standing on wet carpets or floors (especially if concrete). Do not use your household vacuum cleaner to remove water.
Remove as Much Standing Water as Possible
- Floors: Remove as much standing water as possible by squeegee, mopping or blotting.
- Carpeting: Blot wet carpet with clean white towels. Remove Oriental rugs or other colored rugs from wet wall-to-wall carpet. Place a fan so air flows over the carpet, speeding the drying process.
- Ceilings: Punch small holes in sagging ceilings to relieve trapped water. Place a plastic (not metal) bucket under the leak. Do not turn on ceiling light fixtures or fan if the ceiling is wet.
Move Wet Items to Dry Areas
- Clothing/Fabrics: Move wet items to a dry place. Do not allow draperies to remain in contact with wet floors or carpeting. Open and empty drawers and cabinets for complete drying. Hang furs and leather goods to dry separately at room temperature.
- Furniture: Move lighter pieces off of the carpeting. Place plastic wrap or plastic bags beneath the legs of larger furniture. Wipe any residual water off of the furniture.
- Art Objects/Paintings: Remove valuable painting and pictures from wet walls. Transfer all objects to a dry safe place.
- Upholstery: Remove and prop up wet upholstered cushions for even drying. Check for possible bleeding of colors.
- Luggage: Open suitcases and luggage to dry in sunlight if possible.
- Books/Magazines: Do not leave books, magazines or other colored items on wet carpets or floors. High value books should be given to a professional for proper drying and restoration as soon as possible.
Ventilate Affected Areas
- Air Conditioning: Turn on your air conditioner (no lower than 72 degrees) to speed drying in the summer, or more humid regions.
- Open windows and doors when possible.
What You Need to Know About Water Damage
- Standing water and wet materials are a breeding ground for microorganisms including viruses, bacteria, and mold. These can cause disease, trigger allergic reactions, and continue to damage materials long after the water damage. Call today for an expert to contain, inspect for, and terminate microorganisms.
- Sewage and storm water contamination must be contained. Call today to fix the problem, clean the sewage, AND disinfect and sanitize your home and belongings.
- Water can seep into your walls, floors, and belongings.
- Complete structural drying is an excellent method of drying, reducing risk of mold, and restoring your property to normal as quickly as possible.
- Wood floors and finished flooring can swell and eventually become damaged if not properly dried. Patience is required as finished flooring and floor systems do not react and dry out overnight, sometimes taking weeks for the flooring to flatten and/or stabilize.
- Drying water damaged kitchen cabinets is easier and more cost-effective than replacing them.
Call 215-657-2244 today for dehumidification and complete drying services- structure, carpet & area rugs, hardwood floors, walls, furniture, kitchen cabinets.
- Like water, fire & smoke damage can often be concealed from the visible eye. Smoke comes in four basic varieties:
- Dry Smoke results from a fast burning high temperature fire.
- Protein Smoke has an extreme pungent odor but is virtually invisible.
- Wet Smoke is described as resulting from a low heat fire.
- Fuel Oil Soot Smoke results from furnace currents.
Call 215-657-2244 today for a professional to evaluate the smoke and fire damage, target the type of smoke that has saturated the structure, and identify what type of restoration or replacement is necessary.