The policy wording requires that after payment of a claim, the insurer will collect the damaged items (salvage) as it then becomes the insurer’s property.
But how does this affect you as the insured and your policy?
Once the salvage is collected by one of the insurer’s specialized salvage handlers the items are demolished, repaired or are sold for parts. The money received from this is then allocated back to your claim and your policy. The loss the insurer occurred through your claim is then reduced. In return, your claimed amount to your policy is automatically adjusted and this will have a positive impact on your policy and reduce the possible risk of re-underwriting. Your claims history will however still have an impact on your policy.
Why you should rather keep the items and not leave this at the repairer
Repairers have a limited amount of space and usually don’t keep salvage for very long. They are sometimes out of their own capacity and gain by selling the items off or just get rid of them. Why allow this, if keeping the salvage could have a more positive impact on your claim?
Anista-Lee Beukes
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