What does the term "Salvage" refer to in relation to damaged property?

The term "Salvage" specifically refers to damaged property that an insurer takes possession of after a loss. This typically happens when property has been damaged but still retains some value, allowing the insurer to recover costs by selling the salvaged items. Insurers often seek to minimize their losses by salvaging property that can be repaired, refurbished, or sold, thereby recouping some of the amounts paid out in claims.

This understanding is crucial for public adjusters, as it relates to the process of claims handling and the potential recovery opportunities available in situations of property damage. The other potential options may look appealing but do not accurately capture the essence of what "salvage" entails within the context of insurance and damaged property.