What method is used to determine the value of salvage when the insured wants to retain it?

The method used to determine the value of salvage when the insured wants to retain it is through professional valuation by the insured. This approach relies on the expertise of professionals who can assess the condition, market demand, and potential resale value of the salvage. The insured is best positioned to provide accurate information about the specific item, which may include its history, condition, and any unique features that could influence its value.

Understanding the value of salvage is essential as it helps in negotiating the settlement amount, ensuring that both the insurer and the insured have a clear understanding of the salvage value prior to any decisions being made. This professional estimation is especially relevant when considering the insured's interests and the final amount they may receive in relation to the claim.

In contrast, other methods like market comparison or insurance company assessment may not provide a tailored valuation based on the specific circumstances of the insured's property. Government standard pricing could also fail to account for unique items or market variations, which can significantly impact the actual value when determining salvage worth.