Stolen Item Located For Sale - But Ins Paid Out

bernard_ric

A dilemma.

An item which had been stolen and successfully claimed for has now (many months later) been recovered due to some sleuthing and help from Police.

What should now be done regarding the insurance company?

Please I am not looking for speculation as I can do that but factual advice from someone with knowledge of the industry?

Many thanks

maclean2

Hi - tell the insurance company as it is their property to dispose of.

Alternatively if you want the item back you will need to agree how much the insurance company want for it.

This is standard practice within insurance as clearly it is not legal to profit as a result of a theft or other insurance claim.

mattymoo

Yup - title to the goods passed to the insurers when they settled the claim.

If the item had been purchased by somebody innocently, that person would have no title to the goods. The insurers may however agree to sell it to them for a reduced figure and they are then free to try and claim it back from the possible crook who sold it to them.

If the goods have come back into your possession via the police, the insurers will normally arrange to take it off your hands and they will then auction it off. It depends on the item though.

Just give your insurers a call and be guided by what they say.

courtjester

In practice, the choice is yours.

Although legally you have given up your rights of ownership to the property (under the subrogation conditions of your policy), the insurers will give you first option to have it back *in return* for repaying the amount they paid you. Note they will not 'sell' it back to you for a different sum and the amount would only vary if the item is now damaged.

If you no longer wish to have it back (because you might have replaced it), then it is now the insurer's property and for them to arrange to take it off your hands or directly from the Police if they have possession.

What you must not do is fail to advise the insurers of the recovery.