The insured had a ring stolen that was not specifically scheduled. Our policy has a special limit of $2500.00 for unscheduled jewelry for loss caused by theft. We confirmed the ring has a replacement cost of $4500.00. We paid the $2500.00 limit as the insured's deductible was $1000.00 and the whole loss was over the special limit. The ring was recovered at a local pawn shop. The insured no longer has the $2500.00 we paid to her. It does not seem correct that we keep the ring because we then would have something with a value of $4500.00 but we only paid $2500.00. It does not seem correct that the insured keep the ring because then she has ring with a value of $4500.00 plus our $2500.00. We had the ring appraised and its ACV/salvage value is $1500.00. We could sell the salvage for $1500.00 and return the $1500.00 to insured but then she would have our $2500.00 plus the $1500.00 for a total of $4000.00 which does not make her whole as the ring's replacement cost is $4500.00. Also in that scenario we paid $2500.00 for nothing as now there is no loss of the ring. If we were to keep any part of the salvage value then the insured is left without the ring and without being made whole. Obviously I am perplexed by this set of facts and am seeking your input to help determine what constitutes an equitable resolution in this matter.