Which right allows a title company to recover damages after paying a claim?

• A. Suit quiet title
• B. Title insurance
• C. Subrogation
• D. Encroachments

Answer: (C)

Subrogation is the right that lets a title insurer recover damages after paying a claim. When the title insurer covers a covered defect and pays the insured, the insurer steps into the insured’s position and can pursue the party responsible for the loss to be reimbursed. This keeps the responsible party from escaping liability and prevents the insured from being paid twice for the same problem. It’s not about bringing a quiet title action to clear ownership, nor about encroachments, which are boundary intrusions. It’s also not the policy itself, but the insurer’s recourse after payment.