The Avenger Posted May 2, 2013 Share Posted May 2, 2013 So about 6 weeks ago someone broke into my house - made off with electronics and a bunch of my wife's jewelry. I immediately reported the theft to the insurance company and they came out to take a look. Within a few days I bought a bunch of replacement items - a Nintendo Wii, an Android tablet, a blue ray player - when you have 8-year-old kids you can't wait to replace these things. Anyway, I filed all the paperwork and the police reports and just last week the insurance company sent me a check - replacement value for everything listed, minus my deductable and some depreciation on a few things (my laptop). Yesterday the cops stopped by and showed us some pictures of our stolen items - they picked up some suspects and had found a bunch of stuff they either had in their posession or had pawned in local shops - some of it is ours. Excited they found our stuff, but we've already been paid out, so.... ...what happens now? I imagine the ethical/legal thing is that I need to call my insurance and let them know. What happens if they've paid me out for something like a Wii that I've already replaced but has also been recovered? Anybody been through this? Anyone know what my legal obligations are? Link to comment Share on other sites More sharing options...
BuffaloBud Posted May 2, 2013 Share Posted May 2, 2013 The insurance company paid you for the stolen items. The located stolen items now belong to the insurance company. Link to comment Share on other sites More sharing options...
Gugny Posted May 2, 2013 Share Posted May 2, 2013 I did a search and was able to find this. Don't take it as gospel. Hopefully there's an attorney on the board who will be kind enough to chime in. Homeowners policies often cover theft or destruction of jewelry and other valuables under the contents language of the policy. Rare or expensive pieces may be covered under an additional endorsement called inland marine coverage. If a covered item is stolen or lost, you may file a claim with your carrier to be made whole for your loss. Sometimes, the item is recovered when a thief is captured or it may be found by the homeowner. If you have been paid for the loss of your watch and you recover it by any means in any condition, this should be reported to your insurance carrier. The carrier will give you the option of repaying the claim to them directly or giving the watch to them to dispose of as they see fit. If the watch has sentimental value, you may choose to repay the claim so you can keep the watch in your possession.Some insurance companies hold salvage auctions either publicly or internally for employees. Internal auctions allow insurance employees to purchase recovered items at greatly reduced prices. You may be able to bid on your item if the carrier allows this option. There are also salvage companies that may contract with carriers to pick up their salvage items and resell them for a percentage of the selling price.If you do not report a recovered item and this activity is discovered by your carrier, you can be prosecuted for insurance fraud as a federal offense with consequences of possible fines and imprisonment. Link to comment Share on other sites More sharing options...
KD in CA Posted May 2, 2013 Share Posted May 2, 2013 I'm pretty sure your legal obligation is to contact your insurance company. Link to comment Share on other sites More sharing options...
BringBackFergy Posted May 2, 2013 Share Posted May 2, 2013 You can ask the insurance company (or look at the adjuster's list of values) and repay the company for the value they paid to you if it exceeds the value of your deductible. Link to comment Share on other sites More sharing options...
The Avenger Posted May 2, 2013 Author Share Posted May 2, 2013 If you do not report a recovered item and this activity is discovered by your carrier, you can be prosecuted for insurance fraud as a federal offense with consequences of possible fines and imprisonment. Yikes - I don't like the sound of that! Just kills me that I'm required to do the right thing and report the recovery, yet the mere fact that I made a claim in the first place, against a policy on which I make regular payments, will cause my rates to be jacked up. The insurance company gets to screw me but I have to be Johnny Good Guy with them..... Link to comment Share on other sites More sharing options...
BringBackFergy Posted May 2, 2013 Share Posted May 2, 2013 Yikes - I don't like the sound of that! Just kills me that I'm required to do the right thing and report the recovery, yet the mere fact that I made a claim in the first place, against a policy on which I make regular payments, will cause my rates to be jacked up. The insurance company gets to screw me but I have to be Johnny Good Guy with them..... I have never had a case like this, but as I mentioned above, if the value of the returned items falls below the deductible (which is your out of pocket loss before getting insurance proceeds) I would argue that you could keep the property...to be safe, however, and to cover your ass, get an email from your agent telling you there is no problem with that. On the other hand, if the returned items exceed your deductible, you should repay the company for that amount over deductible (since you have been made whole by getting your deductible back). Link to comment Share on other sites More sharing options...
The Tomcat Posted May 2, 2013 Share Posted May 2, 2013 The insurance company paid you for the stolen items. The located stolen items now belong to the insurance company. ^ this Link to comment Share on other sites More sharing options...
BringBackFergy Posted May 2, 2013 Share Posted May 2, 2013 ^ this Here's the problem though...let's say Avenger lost $5000 of property from the robbery. He has a $1000 deductible so he gets a check from the insurance company for $4000. He has, therefore, lost $1000 of property without restitution from the criminal. If the police find the property and it's worth $1000, he keeps it because it repays him for his lost deductible. He is now whole. If the recovered property is valued at $3000, he keeps $1000 of it and returns the other $2000 to the company. If the company gets to keep all the recovered property, the insured is still out $1000 deductible which is not a reasonable outcome. Link to comment Share on other sites More sharing options...
Jim in Anchorage Posted May 3, 2013 Share Posted May 3, 2013 I think you should be asking you're claim adjuster about this, not us. Link to comment Share on other sites More sharing options...
rockpile Posted May 3, 2013 Share Posted May 3, 2013 I think you should be asking you're claim adjuster about this, not us. Somehow that seems like calling the IRS for tax deduction advice. Link to comment Share on other sites More sharing options...
NoSaint Posted May 3, 2013 Share Posted May 3, 2013 Move out of the country keeping the cash and recovered Xbox. They'll never catch you. Link to comment Share on other sites More sharing options...
Jim in Anchorage Posted May 3, 2013 Share Posted May 3, 2013 Somehow that seems like calling the IRS for tax deduction advice. Place it as a "what if" question. Admit nothing, just "what if?" Link to comment Share on other sites More sharing options...
rockpile Posted May 3, 2013 Share Posted May 3, 2013 Place it as a "what if" question. Admit nothing, just "what if?" I know, just fooling around. I have found it is best to just do the right thing, even when tempted. Not saying I cannot be bought, just no one has come up with the right price yet! Link to comment Share on other sites More sharing options...
The Avenger Posted May 3, 2013 Author Share Posted May 3, 2013 Place it as a "what if" question. Admit nothing, just "what if?" Yeah - now that the claim is settled I have absolutely no reason to call my adjuster and ask such a question - that "what if" would certainly have him open up the file and probably checking back with the police, something he's not going to do otherwise, hence my quest for advice here.... Link to comment Share on other sites More sharing options...
BringBackFergy Posted May 3, 2013 Share Posted May 3, 2013 Yeah - now that the claim is settled I have absolutely no reason to call my adjuster and ask such a question - that "what if" would certainly have him open up the file and probably checking back with the police, something he's not going to do otherwise, hence my quest for advice here.... The police report has an entry re. whether the victim has insurance and typically they will make note of the company and their contact information. A supplemental report will be filed now that some property was recovered. The insurance company may be notified of the recovery as well. Hence the reason why you should call your agent (not the adjuster) and advise that you will keep the property up to the value of your deductible. That way you are covered if the ins company finds out the items were found. Link to comment Share on other sites More sharing options...
The Avenger Posted May 3, 2013 Author Share Posted May 3, 2013 The police report has an entry re. whether the victim has insurance and typically they will make note of the company and their contact information. A supplemental report will be filed now that some property was recovered. The insurance company may be notified of the recovery as well. Hence the reason why you should call your agent (not the adjuster) and advise that you will keep the property up to the value of your deductible. That way you are covered if the ins company finds out the items were found. Nothing I provided to the police had any insurance info on it - just a basic report with my narative of what happened and a list of items taken. I've seen the report filed by the responding officer and that report also has no mention of insurance. Link to comment Share on other sites More sharing options...
BillsWatch Posted May 3, 2013 Share Posted May 3, 2013 Nothing I provided to the police had any insurance info on it - just a basic report with my narative of what happened and a list of items taken. I've seen the report filed by the responding officer and that report also has no mention of insurance. Did you file a copy of police report with insurance company as usually required? If so they, if they make the effort, can get this out of a database especially since you live in a major metropolitan area if I remember right. Link to comment Share on other sites More sharing options...
Nanker Posted May 3, 2013 Share Posted May 3, 2013 (edited) Did you file a copy of police report with insurance company as usually required? If so they, if they make the effort, can get this out of a database especially since you live in a major metropolitan area if I remember right. This. And since this was posited as an ethical and legal question... you know what the right thing to do is. In all likelihood your rates may not increase, although you're right - making a claim is noticed and noted by your insurance carrier. Contact your insurance agent and let them know the rest of the story. I was robbed several years ago and made a sizable claim against my homeowners insurance. First and only time I made one - knock on wood. Never recovered any of my stuff, but if the police did - it belongs to the insurance company who, in your case would likely sell your stuff back to you - if you're interested in ANY of them. They have little to zero interest in possessing and selling off your items. You're in the driver's seat. Insurance is not supposed to make you better off after suffering a mishap. You were compensated for your loss. You got new stuff. Your insurance made you whole. It's not supposed to act like a gift because you were done wrong by the crooks. Just my 2¢. Edited May 3, 2013 by Nanker Link to comment Share on other sites More sharing options...
The Avenger Posted May 3, 2013 Author Share Posted May 3, 2013 This. And since this was posited as an ethical and legal question... you know what the right thing to do is. In all likelihood your rates may not increase, although you're right - making a claim is noticed and noted by your insurance carrier. Contact your insurance agent and let them know the rest of the story. I was robbed several years ago and made a sizable claim against my homeowners insurance. First and only time I made one - knock on wood. Never recovered any of my stuff, but if the police did - it belongs to the insurance company who, in your case would likely sell your stuff back to you - if you're interested in ANY of them. They have little to zero interest in possessing and selling off your items. You're in the driver's seat. Insurance is not supposed to make you better off after suffering a mishap. You were compensated for your loss. You got new stuff. Your insurance made you whole. It's not supposed to act like a gift because you were done wrong by the crooks. Just my 2¢. Agreed anout this not being a gift - not looking to really make money. OTOH, I'm out my deductable and I'm pretty sure that this will raise my rates (this is my second break-in where I've made a claim). I actually didn't want to file a claim at first becuase of the deductable/rate increase, but when I did the math about what was taken I was looking at about $4K and I didn't want to eat that. Now that some (but not all) of my stuff was recovered it kind of changes the equation - if I had suffered a smaller loss I might not have reported it. In any event, I'm feeling like I'm not completely whole at this point and recovery of some of my things isn't changing that, hence my ethical dimemma...... Link to comment Share on other sites More sharing options...
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