Which condition gives the insurer the right to take possession of damaged property after paying the loss?

• A. Salvage
• B. Subrogation
• C. Waiver
• D. Replevin

Answer: (A)

Salvage is the insurer’s right to take possession of damaged property after paying the loss. Once the insurer settles the claim, they can own or control the damaged items to recover part of the payment by salvaging or selling them, applying the proceeds to the claim. This helps the insurer recoup some of its costs rather than leaving the damaged property with the insured.

Subrogation relates to the insurer pursuing the responsible party to recover costs, not to taking possession of the damaged property. Waiver is simply relinquishing a right, which isn’t about property control after a claim. Replevin is a legal action to recover property in court, not the insurer’s standard post-payment possession right.