Subrogation Release

What Does Subrogation Release Mean?

A subrogation release is a document that grants the insurer the right to sue and recover compensation from a third party responsible for a loss incurred by the insured. Following an incident caused by a third party, the insurance company may request or require the insured to sign a subrogation release, enabling the insurer to pursue legal action to recover the funds paid out on a claim.

Insuranceopedia Explains Subrogation Release

For instance, if someone vandalizes your home, your homeowner’s insurance policy would cover the damages, and you would retain the right to take legal action against the perpetrator. However, by signing a subrogation release, you transfer this right to your insurance company.