Whether you’re dealing with a burst pipe in Boston or a water loss in Florida, the difference between a recoverable subrogation claim and a closed file often comes down to one simple question: When did the clock start ticking?
Subrogation claims are bound by strict statutory deadlines, but the clock starts running as soon as the damage occurs. Acting quickly – through early investigation, evidence preservation, and timely legal evaluation – can make all the difference in protecting recovery rights.
Understanding When the Clock Starts Ticking
Each jurisdiction has its own rules for how long you have to bring a subrogation action. Generally, the “clock” begins on the date of the loss or the date the damage occurs, though there are exceptions.
For example, in Massachusetts, the statute of limitations for a tort action is three years.
Construction-related claims, however, may also be limited by a statute of repose, which sets an absolute deadline that typically starts at the completion of the construction — regardless of when the defect is discovered.
The Legal Clock vs. the Practical Clock
The statutes trigger the legal clock, but subrogation also has a practical clock – one that can make or break your recovery.
As soon as the damage occurs, everything becomes evidence: damaged parts, debris, and witness accounts. The earlier that information is collected and preserved, the stronger the case and potential for recovery.
With time, memories fade and evidence disappears. Interviews of insureds, contractors, property managers, and any other individuals with personal knowledge of the loss should happen right away or as soon as possible.
For example:
A frozen pipe bursts in January. The insured repairs it immediately. By March, the insurer evaluates subrogation, but the plumbing parts are gone. Without them, proving a product defect or negligent installation is nearly impossible, even though the legal deadline hasn’t yet expired.
That’s why timing isn’t just about meeting filing deadlines — it’s about preserving proof.
Time Is the One Thing You Can’t Recover
To stay ahead of the clock, here are the ABCs of protecting subrogation rights:
A – Action
- Secure the scene and preserve the evidence
- Communicate with insureds early and clearly
- Retain an expert promptly
- Document and photograph everything
- Interview all witnesses while the details are fresh
B – Best Practices
- Identify potential subrogation claims within days of the loss
- Consult with legal counsel as soon as possible
- Ensure proper scene and evidence preservation
- Educate insureds about the subrogation process
- Obtain and maintain documentation of all parties involved
- Track and calendar statutory deadlines
C – Collaboration
Working with legal counsel early in the process benefits both insurers and attorneys. Aligning strategy from the start allows for:
- Stronger recovery potential on paid claims
- Fewer disputes about causation and liability
- Better case quality and negotiation leverage
- More time to navigate jurisdictional and contractual nuances
Subrogation success often depends less on the law itself and more on timing and preparation. When you act quickly — securing evidence, engaging counsel, and documenting early — you put yourself in the best position to recover what’s owed and protect your insured’s interests.
In subrogation, time isn’t just money — it’s opportunity. Don’t let the clock run out on yours.
