Salvage is described as

• A. Belongs to the insured
• B. Is used to reduce the insurer's loss
• C. Belongs to the adjuster who has settled the loss
• D. Is the useless debris of a total loss

Answer: (B)

Salvage is the value recovered from damaged property after a loss that the insurer can claim to help offset the claim payment. When a loss occurs and the insurer pays, salvage rights let the insurer take possession of the damaged item or sell it, with the proceeds reducing the insurer’s net loss. This isn’t merely useless debris, and it doesn’t belong to the insured or to the adjuster by default. The purpose of salvage is to recover part of the payout by turning the damaged property into recoverable value, thereby lowering the insurer’s overall exposure.