Reselling Insurance Salvaged Merchandise
by Robert Cyr on August 24th, 2009
Have you considered purchasing insurance salvage merchandise? This is inventory that has been involved in some type of insurance claim where a policy holder has been indemnified for a loss. Probably the most recognizable type of insurance salvage would be that of an automobile loss, where a car is involved in an auto accident and the repair cost ends up being more than the vehicles worth. In this situation insurance companies will deem the vehicle a “total loss” and offer the insured a monetary settlement based upon the value of the car just prior to the accident. The insurance company will then take title of said vehicle and, often, dispose of through an auctioneer in an attempt to recover as much money as possible to offset the original claim settlement.
What happens when large warehouses filled with hundreds of thousands of dollars worth of inventory catch fire? If properly insured the company that owns the inventory will be indemnified for the loss. Once a settlement is reached for the insured, the damaged inventory will become property of the insurance company that just wrote a large claim check.