In property insurance, what principle allows the insurer to take possession of damaged property after paying the loss?

The correct choice is the right of salvage because it refers specifically to the insurer's ability to assume ownership of the damaged property after compensating the insured for their loss. This principle allows the insurer to recoup some of its losses by selling the salvaged property or recovering value from it.

When an insurer pays a claim for a total loss, they often have the legal right to take possession of the damaged property to mitigate their financial loss. By salvaging the property, the insurer can potentially recover some of the costs associated with the claim. This encourages insurers to effectively manage risk and minimize their total payout, while also giving them an incentive to find value in otherwise damaged property.

In contrast, the other options represent concepts that do not accurately describe this process. The right of possession refers to having the legal authority over a property but does not imply the ability to reclaim ownership after compensation. The right of recovery typically involves pursuing compensation from a third party responsible for the loss, while the right of ownership denotes legal ownership of the property itself and does not specifically pertain to the salvaging process after a claim has been paid.