Buying Insurance Salvage Merchandise
Insurance salvage merchandise is an insurance form of loss that is designed to compensate the loss of a client's property due to damage, loss, or destruction. Insurance companies are permitted by law to recover this from an insured party. The amount that can be recovered varies by state. However, in most states insurance salvage merchandise is limited to items that have been damaged, ruined, or are missing. For instance, the insurance company cannot claim on a piano because it has been damaged.
Insurance salvage occurs when an insurance company compensates for loss or damage to property by either retaining or transferring the loss to another party. This transfer can either be partial or absolute. When there is an absolute loss, the insurance company simply pays the insured party. If an individual or business attempts to retrieve the item and fails, then the insurance company must absorb the loss.
It is very important to completely disclose to your insurance company what you plan to do. It is also important to know how you intend to pay for the lost property. If you have a house that you intend to rent out, it is vital that you tell your insurance company before they give you their advice. If you were not insured when the accident occurred, it may be necessary to purchase insurance to cover you.
Once you contact your insurance carrier and discuss insurance salvage, it is important that you follow their advice to the letter. All insurance companies are different. What one insurance company considers as damage or loss may be different than another. As such, it is essential that you seek the advice of your insurance company to ensure that you are filing the correct claim and are reimbursed properly for the loss.
If you choose to attempt to save on your claim with your insurance company you should be prepared to do some research. Knowledge is power and understanding what type of damage you have sustained will help you determine what type of claim is appropriate. You can determine this by consulting an insurance comparison site. After comparing the value of your damaged property with others in the same area you will know what to expect your insurance company to pay you. In addition to comparing the value of your item, you will also want to compare it with similar items that have been in the market since the accident.
After you have decided what type of claim to make you should contact your insurance company. You should always ask for an estimate on repairing your damaged property. Many times the estimate is for a lump sum. When you are given an estimate for a lump sum, you should have an idea of what you would need to repair your property. If you know how much you need to repair your property, it will be easier to find a company who will give you the best estimate available.
Insurance companies like to salvage their policies in any way possible. They often try to recoup as much of their money from the insurance policies of people who file these types of claims as possible. When you are working with an insurance company, you should understand that they may try to steer you away from filing a claim which may result in them having to pay you for their salvaged policy. They may also try to convince you to settle with them rather than making a claim against the other party. By working with your insurance broker you can learn about all of the options that you have and which company you should work with for your insurance salvage merchandise claim.
If you have suffered damage to your property through no fault of your own, it may be wise to try and get your insurance company to pay for your damaged property. If you do not have insurance, it is important to obtain at least the minimum insurance required by your state. The insurance salvage policies offered by most insurance companies will allow you to get up to twice the amount of coverage from your policy for a certain percentage of the cost of your claim. To obtain this coverage, you will need to talk to your insurance broker. In many cases you can obtain a free insurance salvage quote by simply filling out a quick form.
Insurance companies generally take ownership of the merchandise that they have insured. To recover some of their payouts, the insurance company will sell the "salvaged merchandise" through liquidators, auctioneers, and wholesalers. You can contact insurance companies, and ask them to connect you with the companies that liquidate their salvaged merchandise. A major segment of the salvage industry consists of buying and selling cars that were severely damaged and considered to be salvage. Keep in mind that insuring salvage cars be be very expensive.
If you are ready to purchase this category of merchandise, you should be prepared for having to dispose, and/or fix and refurbish, much of the products that you will be receiving. The key is to pay a low enough price so that you can make money on the small percentage of merchandise which is in new, or near new, condition.
Below are resources that can help you find and purchase salvage: