When certain property, such as vehicles or buildings, get damaged through an accident, fire or natural calamities, some insurance providers take over ownership of these properties after they pay for the claims that owners get for any insurance coverage for these items. The damaged properties are now classified as salvaged items, and the insurance company or provider has the option of selling these items as junk, or to third party companies that market salvage items. Some insurance companies hold auctions for insurance salvage properties.
A vehicle that is sold in an insurance salvage usually is recovered by insurance companies and can have damages from an accident, fire, floods or other natural calamity. Other vehicles may have been recovered vehicles that were previously stolen and were either vandalized or had damages when recovered. These can be bought and parts can be recovered, sold as junk, and some even buy cars and sell them as is. They can be made to run again, and if damages are severe can be rebuilt.
Some states allow insurance providers to sell salvage insurance for properties that were bought as salvaged items. Salvage insurance, if permitted, are regulated differently by different states. Some require vehicles for example, to undergo a thorough inspection from the DMV and the police before they allow them to be sold and for it to be covered by salvage insurance.
A good number of people who have bought salvage properties find out that many insurance providers do not want to provide salvage insurance coverage for these properties. Insurance providers usually shy away from salvage insurance since it is often hard for them to determine the real value of the salvaged property. And since it is property that may have been previously damaged to great extent, they may lose a lot of money in the end if they provide coverage for it.
Another form of salvage insurance is for marine vehicles. This is a kind of insurance coverage that is offered by insurance providers for individual or company marine vehicle owners. This will provide assistance to the marine vehicle in cases of an accident or break down at sea, but mostly when the marine vehicle gets damaged by being grounded or worst, sinks. Typically included in salvage insurance coverage are towing services, repairs and patching of damages, and refloating the vehicle if it has sunk. Salvage insurance also provides coverage not only for the marine vehicle but for important cargo as well.