What does salvage refer to in the insurance industry?

In the insurance industry, salvage refers to the process of recovering or disposing of a damaged vehicle or property after it has been deemed a total loss. This process often involves determining what materials or parts can be sold or salvaged from the wrecked property to recoup some of the losses by selling these assets. This is essential for insurance companies as it helps to reduce the overall payout for the claim. Salvage can involve selling to salvage yards or through auctions where parts of the vehicle can be repurposed or reused.

The other options describe related yet distinct concepts within the realm of insurance and claims processing. For instance, recovering property after a total loss pertains to the collection of items that may still have value, but it doesn’t fully encapsulate the broader activities of salvaging as it typically focuses on items that may still be usable. The reselling of damaged goods for profit is similar but typically implies a more commercial intent rather than focusing on the insurance recovery aspect. Assessing value for repairs does not directly relate to salvage; rather, it speaks to the evaluation of costs associated with restoring the property, which is a separate function within the claims process.