Back to top

Subrogation Claim



Dedicated to collecting damages owed to you.

Encompass works hard to collect damages owed from responsible parties as quickly as possible. You and your independent agent will be notified of any significant developments and we will advise you once subrogation is filed.

What is subrogation?

Subrogation is the process by which an insurance company attempts to recover money it paid out to its insured as a result of a covered loss but another party is actually responsible for all or part of the damages.

How does subrogation affect me?

If Encompass decides to pursue subrogation, we will work hard to recover the damages from the responsible party. Damages may involve costs paid by you and Encompass.1

For example, if you have a car accident and the other driver caused the accident, or if damage was caused to your home by a faulty appliance, Encompass may pay your claim and then seek reimbursement from the other party.2

Reimbursement when damages are recovered.

We process reimbursements as quickly as possible and try to get you a check as soon as the money is received.2 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.2

Examples of common subrogation cases.

These examples outline general rules that apply in many states—please discuss the specifics of your case with your subrogation claim representative.

The other party is 100% liable, but only paid part of the amount.

The total amount of damages paid is $10,000. Because the other party was 100% liable for the damages, the subrogation claim is for $10,000.

  • Of the $10,000 paid—you paid $1,000 and your insurance company paid $9,000.
  • That means your proportion is 1/10 or 10% of the total amount claimed—$1,000.
  • However, the amount actually collected is only $5,000 and there were no collection expenses.
  • You are then reimbursed for $500 or 10% of the amount collected.
  • Your insurance company is reimbursed for $4,500.

The other party is partially liable and paid part of the amount.

The total amount of damages paid is $10,000. The other party was 60% responsible for the damages and the subrogation claim is for $6,000.

  • Of the $10,000 paid—you paid $1,000 and your insurance company paid $9,000.
  • That means your proportion is 1/10 or 10% of the total amount claimed—$600.
  • However, the amount actually collected is $3,000 and there were no collection expenses.
  • You are then reimbursed for $300, or 10% of the amount collected.
  • Your insurance company is reimbursed for $2,700.

Questions about subrogation?

Subrogation can be complex. If you have any questions about the process, please talk to your claims representative.


Discuss your subrogation claim with your agent.

In addition to our subrogation team and claims team representatives, you can always discuss your situation with your Encompass Independent Agent for even more assistance.

Talk to your agent

1 Costs paid by you usually means your deductible, but could include amounts over your policy limits. This would depend on the circumstances surrounding the loss, the laws in your state and your policy provisions.

2 This would depend on the circumstances surrounding the loss, the laws in your state and your policy provisions.

";
ECC Monitor: OK