What is 'subrogation' in property and casualty insurance?

Subrogation is the right of an insurer, after it has paid a covered claim to its insured, to step into the insured's shoes and pursue recovery from a third party who was legally responsible for the loss. For example, if another driver damages the insured's property and the insurer pays the claim, the insurer can then seek reimbursement from the at-fault party (or their insurer). Subrogation supports the principle of indemnity by ensuring the responsible party ultimately bears the cost and preventing the insured from collecting twice. The insured typically must not impair the insurer's subrogation rights. Understanding subrogation is standard P&C claims content.