This question comes up from out clients time to time. A client has something stolen; a car for example, and the insurance company pays the claim. The insured buys a new car with the insurance money. A month later, the police find the stolen car. Except for a broken window and needing a new ignition it’s in pretty good shape.
So what happens? Does the insured have to take it back? But they have a new car already. Do they have to give back the insurance money? I’m always able to alleviate a lot of stress when I tell my client that it is their choice. They can keep the money and the insurance company keeps the car, or they can give back the money, less the cost of repairs, and take their car back.
With a car, almost everyone keeps the money. But this holds true for any property claim. Let’s say it was a piece of art that was stolen, not a car. Then, many more people will return the money and take their artwork back.
So if you ever find yourself in this situation take a breath and remember it’s your choice. You don’t have to give back the money and no one can make you take your recovered property back. But you can if you want to.
