01 / The meaning
What it means.
A damaged machine may be uneconomic to repair while some components still have a resale value. The policy and settlement agreement determine who may retain, sell or dispose of that property and how its remaining value affects the calculation. The insurer does not acquire every damaged item simply because a loss has been notified. Equally, the insured should not assume it can discard or sell items needed for assessment.
Preserve evidence and seek instructions before disposal when it is safe to do so. Contaminated goods, branded products, confidential data and unsafe equipment can require controlled destruction rather than ordinary resale. Record serial numbers, condition, photographs and disposal costs. Maritime salvage is a distinct technical subject; charges for saving a vessel or cargo should not be treated as ordinary second-hand asset proceeds.
02 / Put it in context
A practical example.
Hypothetical example: a flooded printing machine cannot be economically repaired, but a dealer offers money for undamaged components. The owner gives the offer to the loss adjuster and confirms ownership, safety and settlement treatment before accepting it.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Confirm who may retain, sell or dispose of damaged property after settlement.
- Identify safety, contamination, branding and data-security restrictions on resale.
- Keep valuation evidence and agree how salvage proceeds affect the settlement.
04 / Start a useful conversation
A question for your broker.
Who controls the damaged property, and how would any remaining value or disposal expense be treated in our claim?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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