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.
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.
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