What is the definition of Salvage?

Salvage refers to the act of an insurance company to make use of whatever remaining value an insured property has after claims are paid against it.

When the insurance company has paid for a claim for a property that was damaged, it can take hold of that property and sell it to recover some of the claims it paid. For instance, if the insurance company that insured marine cargo paid for those cargos that were lost at sea, it can try to recover the lost cargo and sell it. If the insurance company paid for the replacement of a car that was totaled, it can sell the totaled car and obtain the proceeds of the sale.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage