Who retains salvage rights when a total loss is accepted?

When a total loss is accepted in the context of an insurance claim, the insurance company typically retains salvage rights. This means that after compensating the insured for the total loss of the property, the insurance company has the legal right to claim any remaining value from the damaged property, commonly referred to as "salvage." This practice allows the insurance company to recover some of the payout made to the insured by selling the salvageable parts of the property.

By retaining these rights, the insurance company can mitigate its loss and offset the financial impact of the total loss claim. In cases of total loss, the insured typically relinquishes ownership of the property to the insurance company, thereby giving them the authority to deal with the salvage. This is a standard practice within the insurance industry and is crucial for managing losses effectively.