Subrogation Release

What Does Subrogation Release Mean?

A subrogation release is a release that transfers to the insurer the right to sue and collect from a third party responsible for a loss to the insured. After an incident involving a third party at fault, an insurance company may ask or require the insured to sign a subrogation release so the former can seek legal action as a means to recuperate money spent on a claim.

Insuranceopedia Explains Subrogation Release

For example, if someone vandalizes your home, your homeowner's policy would cover the damages and you would have the right to take legal action against that person. Signing a subrogation release would mean you give this right over to your insurance company.