What is the Right of Salvage in insurance terms?

The Right of Salvage in insurance refers to the insurer's right to take possession of damaged property that still has some residual value and can be sold after a loss. When an insurer pays a claim for a total loss or significant damage, they often seek to recoup their financial outlay by salvaging the damaged property. This can involve selling the property to recover some costs, typically because the damaged property may still be useful or valuable even in its impaired state.

In this context, the concept highlights the importance of valuing property even after it has suffered damage. While the other options might touch on aspects related to insurance claims or how property is handled post-insurance payout, they do not accurately define the Right of Salvage, which specifically pertains to the sale of property that remains viable despite having been damaged.