Legal mechanism allowing the insurer, who has paid an insurance indemnity, to turn against the third party responsible for the damage up to the amount of this compensation. The insurer can thus avail itself of all the rights and remedies of the insured. Some people are protected from the recourse of the insurer who paid an insurance indemnity, such as people usually living in the insured's home.
WHAT YOU SHOULD KNOW! In divided co-ownership, an insurer may not be subrogated in the rights of a syndicate of co-owners, against one of its co-owners, a person who is a member of a co-owner’s household or a person in respect of whom the syndicate is required to enter into an insurance contract to cover the person’s liability (1075.1 of the Civil Code of Quebec). Thus, the insurer has no recourse against the child of a co-owner who would be responsible for a fire that generated damage to the building. An exception to this rule applies in the case of bodily or moral injury or if the injury is due to an intentional or gross fault.