ADJUSTERSINTERNATIONAL.COM 7 Handling Salvage, Step-By-Step Here are important steps for dealing with undamaged and partially damaged property after a loss: 1. Take all reasonable steps to protect damaged property from further loss. This is a common requirement under property insurance policies. Failure to do so will jeopardize recovery. 2. Decide whether to utilize a professional salvor, if the insurer has not already designated one. Unless the property under consideration is very unique, a professional salvor is typically the best option. Salvors have knowledge of markets for salvage plus experience in preparing and transporting salvage for sale. 3. Develop a comprehensive inventory of the afected property that details the extent of damage. Salvors often provide this service. 4. Identify all special measures needed for securing, handling, or transporting any property that is difcult to access or hazardous. 5. Identify all ownership interests in the afected property, whether it be owned outright or held under contract or on consignment. 6. Identify all other insurance policies that could respond to the loss. 7. Estimate the salvage value of the damaged property, understanding that if the owner/insured wishes to retain the damaged property, the insurer has an interest in valuing that property at the highest reasonable amount in order to reduce the insurance settlement. 8. Identify the benefts and drawbacks of having the insured retain the damaged property or surrendering it to the insurer. — The frst approach, retaining the property, will result in a salvage deduction against the insurance loss recovery but allow the insured to control the disposition of its damaged property. — The second approach, surrendering the property to the insurer, will avoid the deduction and result in a bigger loss payment but could afect the insured’s brand and market position. 9. Negotiate an agreed-upon salvage value for the damaged property. The recommendations of professional salvors carry a lot of weight in these deliberations. 10. Evaluate all potential scenarios when factoring values into the claim calculations and settlement.
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