After a loss has been paid, who retains ownership of the salvage?

In the context of insurance and claims processing, once a loss has been paid by the insurance company, ownership of the salvage typically transfers to the insurance company. This is because, when an insurer pays a claim, they often obtain the rights to any remaining property that can be salvaged. The reasoning behind this is rooted in the principle of indemnity, which ensures that the insured receives compensation for their loss but does not profit from it. The insurer may then choose to sell the salvage to recover some of their losses.

This practice allows the insurance company to mitigate the overall costs associated with the claim. By having ownership of the salvage, they can handle its disposal, repair, or sale, depending on the condition and potential value of the salvaged materials or items. This system also helps streamline the claims process and reinforces the insurance company's financial responsibility in relation to the loss adjusted.