What would happen if my insurance company pays a claim for stolen property but then get recovered by the police?

If your insurance company has already paid a claim for stolen property, but the property is later recovered by the police, the insurance company may have the right to recover some or all of the money they paid out on your claim. This process is called subrogation. Subrogation is a legal concept that allows an insurer to step into the shoes of its insured and seek reimbursement from a third party who caused the loss. In this case, the third party is the person who stole your property. If the stolen property is recovered by the police, the insurance company may ask you to return the money they paid out on your claim or to sign a subrogation agreement. This agreement will allow the insurer to seek reimbursement from the person responsible for the loss. However, the amount of money the insurance company can recover may be limited. For example, if you have already spent the money they paid out on your claim, the insurer may not be able to recover anything from you. Additionally, the insurer may only be able to recover a portion of the money they paid out if the property was damaged while it was stolen. It is important to note that the rules regarding subrogation can vary depending on the type of insurance policy you have and the laws in your state. If you have any questions about your specific situation, it is best to consult with your insurance agent or a qualified attorney.