My insurance comp insured my car with a salvaged title, am i gonna have trouble?

I have had full coverage insurance with my insurance on my car for over 2 years and my car has a salvaged title. Recently it endured hail damage and instead of fixing my car they are totalling it out and letting me keep my car minus the cost a salvage yard would pay them. It is valued at 1600-500 for what they could sell it for and i stand to get 1100 but they want me to send them a copy of the title. Am i gonna have trouble since the title says salvaged on it and get less money? They never asked me about my title when i got insurance on it.

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