Property Management
Subrogation in property insurance allows the insurer to:
ARefuse a claim if the tenant caused the damage
BStep into the insured's shoes and pursue a claim against the responsible third party after paying the insured✓ Correct
CAutomatically increase the premium after a claim
DCancel the policy after a loss exceeds the deductible
Explanation
After paying an insurance claim, the insurer can subrogate (step into the insured's position) and sue the negligent third party who caused the loss to recover the amount paid.
People Also Study
Related New Jersey Questions
- Which of the following lease types has the tenant paying a base rent that increases at set intervals?Property Management
- In a NJ residential lease, which clause allows the landlord to increase rent once per year if properly noticed?Property Management
- A NJ commercial lease requiring the tenant to pay base rent plus property taxes, building insurance, and maintenance costs is called a:Property Management
- A NJ commercial property manager is responsible for coordinating with the building's insurance broker to ensure the property has adequate:Property Management
Key Terms to Know
Right of First Refusal
A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
Study This Topic
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →