When considering the addition of a “waiver of subrogation” clause to a condo HO-6 insurance policy, it’s important to understand the purpose and implications of such a provision. A “waiver of subrogation” clause prevents the insurance company from seeking reimbursement from third parties (such as other condo owners, the condo association, or contractors) who may be responsible for damages covered by the insurance policy.
Including this waiver can be advantageous in several scenarios: it can foster good relations between neighbors by preventing litigation, help meet requirements set by the condo association or contractors, and encourage amicable resolutions of disputes without involving insurance claims. However, it might also result in higher premiums, as the insurer assumes more risk by relinquishing the right to recover costs from at-fault parties.
Before adding a waiver of subrogation to your condo HO-6 policy, consider consulting with your insurance agent or broker to evaluate the potential impact on your coverage and costs. Also, review your condo association’s bylaws to determine if such a waiver aligns with their insurance guidelines and whether it could impact your responsibilities under those bylaws.
