Which clause allows an insurance company to claim ownership of damaged property after paying a claim?

The correct answer is the Salvage Clause. This clause is specifically designed to give the insurance company the right to take ownership of damaged property after they have paid out a claim to the insured. Once the insurance company compensates the policyholder for their loss, they may seek to recover some of their costs by taking possession of the damaged property, which can often be repaired or salvaged.

This process helps insurers mitigate their overall losses and allows them to financially benefit from the reselling or disposing of the damaged goods. The reason for this clause's existence is to balance the interests of both the insurer and the insured, ensuring that the insurer can recoup losses while the insured receives the necessary support following a loss.

The other options each represent different concepts in insurance but do not describe the transfer of ownership upon claim payout as effectively. The Assignment Clause refers to the rights to transfer policy benefits to another party, the Abandonment Clause allows the insured to abandon property and seek compensation under certain conditions (but not for ownership transfer to the insurer), and the Subrogation Clause provides the insurer the right to pursue recovery from a third party that caused a loss after paying a claim to the policyholder.