Equitable Subrogation

1
Equitable Subrogation
Creditor
Debtor
2
Equitable Subrogation
Creditor
Debtor
3
Equitable Subrogation
4
Contractual or Equitable Subrogation in Property
Insurance
Happy Homeowner
Neighbor
Insurer
5
Contractual or Equitable Subrogation in Property
Insurance
Not Very Happy Homeowner
Neighbor - Tortfeasor
Insurer
6
Contractual or Equitable Subrogation in Property
Insurance
Not Very Happy Homeowner
Neighbor - Tortfeasor
Insurer
7
(No Transcript)
8
(No Transcript)
9
What, me worry?
10
Mortgage Clause

• Facts
• House value 1,000,000 (structure 800k)
• Mortgage balance 700,000
• Equity 300,000
• Loss 400,000 (i.e., sell as is for 600k)

11
Mortgage Clause

• Facts
• Same as above, except
• Coverage defense Misrepresentation
  (e.g., failure to report prior fire losses)