Escrow & Title

What is 'subrogation waiver' in a Delaware property insurance context?

AA waiver by the insured of the right to sue the insurer
BAn agreement by the insurer waiving the right to pursue recovery against a third party after paying a claim, often required in leases to protect tenants✓ Correct
CA waiver of subrogation rights between co-owners of a property
DAn insurer's waiver of coverage exclusions

Explanation

A subrogation waiver prevents the insurer from pursuing a claim against a specified third party (often the tenant in a commercial lease) after paying a property damage claim. Landlords typically include mutual waivers of subrogation in commercial leases to reduce litigation between landlord and tenant.

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