What is Abandonment and Salvage?
Abandonment and salvage is a term that refers to one party's relinquishment of an asset and another party's subsequent claim to the asset.
How Does Abandonment and Salvage Work?
Abandonment and salvage frequently appears in insurance contracts. Abandonment and salvage specifically states that if the owner abandons an insured asset or piece of property, the insurance company may rightfully claim it for salvage. The owner must express in writing his or her intent to abandon an asset or property.
For example, if someone abandons a house that has sustained heavy flood damage, the owner must provide a written notice of intent to abandon the house. The insurance company may then lay claim to the house and attempt to salvage it and resell it.
Why Does Abandonment and Salvage Matter?
Salvage and abandonment can be lucrative for the salvaging party. For this reason, numerous parties may attempt to lay claim to an abandoned asset or property.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
In 1988, when Warren Buffett bought his first shares of Coca-Cola...
Read More →
The relationship between Americans and their banks used to be based on trust. As well it should. In many ways, banks make some of our biggest financial dreams come true. We go to...
Read More →
You know those people who keep every store receipt and instruction manual nicely tucked away in a drawer or filing cabinet? Turns out, they've had the right idea all along. Why do I...
Read More →
Those of us familiar with selling property know real estate agents don't come cheap. With real estate agent commission and fees amounting to as much as 6% of the selling price (that's $18,...
Read More →
While the economy as a whole has been slowly growing, many industries are still shaking off the...
Read More →
