What does my insurance policy say about the recovery of stolen property?

It was reported in the media that a classic sports car stolen from an East Coast city in the US nearly 36 years ago has been recovered on the other side of the country.

A Santa Maria, California, man bought the 1969 Chevy Camaro SS from a seller on eBay in February. But Keith Williams tells KSBY-TV he contacted the California Highway Patrol after certain features of the car didn’t match the model.

Police discovered the vehicle was stolen from Newark, New Jersey, on July 8 1975.

This raises a very important question- “What is the impact on Insurance when property which is lost or stolen is later recovered and the insurance claim has been paid?”

I raised these and other questions with the experts at Outsurance and would like to to share some of the responses received!

  • What happens when your claim for stolen property is paid and the property is then recovered? Do you have to report this to the insurer?

Most definitely a YES. The property actually belongs to the insurance company once the claim is settled. The client cannot keep it otherwise there is a double benefit i.e. he has the cash/replacement item and the recovered item.

  • Does the policy contract have a stipulation on this and what would the wording be?

See the last sentence in the para below:

  • What is the effect on your no claims bonus? – May you return payment of the claim and be placed back in the position prior to the claim?

Yes, this can happen and in fact does happen when clients return the goods or the cash if they recover the lost or stolen items.

  • What would the effect be of damage to the property – where your car is only found 5 years later?

Same principles apply although in reality it rarely happens where the time span is so vast.

One thought on “What does my insurance policy say about the recovery of stolen property?

  • April 18, 2016 at 10:54 am

    My vehicle was stolen about three weeks ago.I person phone me and informed me that they have found me vehicle at Witbank it was sold to them.
    What is the proses Outsurance have paid me out but I want to buy it back from them before it goes to the salvage yard.
    Is it possible or not.

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