Who is entitled to salvage rights after a loss?

Salvage rights pertain to the rights associated with recoverable property after a loss has occurred, particularly in insurance contexts. When determining who is entitled to salvage rights, the insurer typically retains these rights after they have compensated the insured for a loss.

Once the insurance company pays a claim for a total loss, it often gains ownership of the damaged property. This allows the insurer to recover any value from that property, whether by selling it off or utilizing it in some manner, thus helping to mitigate their losses. The insured party may not retain salvage rights once compensation has been provided, as the property is no longer theirs.

In contrast, while the property owner may have interest in the salvage before a claim is settled, after compensation, their claim becomes subordinate to that of the insurer. Similarly, state authorities usually do not have a claim to salvage rights unless specifically stated under other legal circumstances, such as regulatory interventions. Therefore, the insurer, having settled the claim, holds the rightful claim to any salvage.