Did you Know: Your Insurer Owns Your Damaged Goods?
When you put in a claim for damaged property, like a cell phone, laptop, television, etc. and your insurer either pays out your claim or replaces the item, the damaged property, known as salvage, becomes the property of the insurer.
The insurer can then legally sell these items to defray the costs of the claim they have settled.
It’s therefore vitally important that you should not give away, sell, or dispose of your damaged goods without first obtaining permission from your insurer.
Insurers receive salvage rights over property on which they have paid claims, and when you dispose of the damaged property you’re preventing them from exercising this right.
When you next need to claim for a damaged cell phone, remember that that phone becomes the property of the insurer once they’ve paid you out and it then becomes your responsibility to hand over your damaged phone to your insurer or broker.