Salvage Rights
Definition:
The insurer’s right to take possession of damaged property after paying a claim.
Explanation:
Insurers may recover value from salvageable items and offset their costs. Homeowners typically cannot keep damaged property once it has been paid for.
Example:
If your totaled car is paid out under insurance, the insurer may sell it for parts under salvage rights.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.