What is a subrogation recovery?

A subrogation recovery is a legal action taken by an insurance company in California when an insurance claim has been paid out. The insurance company holds the right to “stand in the shoes” of the insured person, and take action to recover the money it paid out for the claim. Subrogation is a legal way for the insurance company to seek reimbursement from a third party that might be responsible for the incident that led to the claim. For example, if an insurance company pays out a claim for damages caused by a car accident, they have the right to seek recovery from the other driver’s insurance company. The insurance company will sue the other driver’s insurance company to get back the money that it paid out on the claim. This is known as a subrogation recovery. Subrogation is also used on property losses. If an insurance company pays out a claim for damages to a house caused by a natural disaster, they may be able to seek recovery from the government agency responsible for managing the disaster. Subrogation is an important tool that allows insurance companies to maintain the financial integrity of their claims settlement process. When a claim is paid out, the insurance company can seek recovery from a third party responsible for the damages and still be in compliance with the law.

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What is a subrogation recovery?

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