What is the consequence for Sue after her insurer indemnifies her for the damage to her property?

When Sue’s insurer indemnifies her for the damage to her property, this means that the insurer has compensated her for her loss, restoring her to the financial position she was in before the damage occurred. This process is governed by the principle of indemnity, which is fundamental in insurance, ensuring that the insured does not profit from a loss but is made whole.

When Sue receives compensation from her insurer, she typically relinquishes her right to seek further payment from any third party responsible for the damages, in this case, Ed. This is due to the subrogation rights held by the insurer, which allows them to pursue recovery from the responsible party after settling with the insured. Therefore, Sue cannot collect any additional payment from Ed since she has already been compensated, and any claims she might have against Ed would transfer to the insurer.

The correct understanding of this situation reinforces the core contractual agreements in insurance, wherein once indemnified, the insured has fulfilled her obligations and protections under her policy, realm of recovery against the third party is largely impacted by the actions taken by the insurer post-indemnification.