Proceeds from a claim

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Mar 29, 2012

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Insurance Question from San Antonio, TX

Asked on 03/29/2012

Proceeds from a claim This is actually a question about our personal property insurance. What do I do if I received proceeds from a claim for a stolen/lost item and then several months later, found that item? What if the proceeds were already spent to replace that stolen/lost item? That is how I reported it, stolen or lost, because I was not certain what happened to it.

Answer given on March 29, 2012

If you receive a settlement payment from the insurance company for a lost or stolen item and find the item later, you need to notfy the insurance company.You did nothing wrong reporting the item as stolen since that was what you thought had happened. Obviously the insurance company had no problem with your claim since they paid you for the item. However, they are entitled to recover the item and take it as salvage. They may be able to sell it and recoup some of the loss they paid for.You can choose to keep the item, but must reimburse the insurance company for the item if you want to keep it. Either way, you need to contact the insurance company and tell them the item has been found and ask what they want to do. They may decide to let you keep the item if it is not of enough value to them to handle taking it back, but you need to give them the option.

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