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Main Insurance Terms abandonment and salvage

abandonment and salvage



legal status giving an insurance company all rights to an insured's property. Theabandonment clauseis usually found inmarine insuranceand not in other property insurance policies such as thehomeowners insurance policyand theSpecial Multiperil Insurance (SMP)policy. An insured may wish to abandon the hull of a ship if the cost of protecting it exceeds its value. The insured must notify the insurance company of its intent to abandon property but the company is under no obligation to accept the abandoned property.

Referring Terms: salvage


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abandonment and salvage