Salvage
The value an insurer can recover by taking ownership of, and selling, damaged property it has already paid a total-loss claim on, like a totaled vehicle or removed building materials, offsetting what the loss actually cost the insurer.
Why it matters
Salvage rights matter on a construction site specifically because materials with real recoverable value, structural steel, mechanical equipment, can't just be discarded once an insurer has paid a total-loss claim, they belong to the insurer until formally released.
On a real project
After a partial building collapse, undamaged structural steel is set aside rather than scrapped, since the insurer that paid the total-loss claim on that portion of the structure has a legal right to recover and resell it.
Who this matters most to
A Restoration Project Manager coordinates salvage removal on a total-loss job, making sure recoverable materials are set aside for the insurer rather than disposed of along with genuine debris.
Where this goes wrong
A restoration crew disposes of total-loss materials, like undamaged structural steel from a partial building collapse, before the insurer's salvage assessment happens, destroying value the insurer was entitled to recover and potentially triggering a coverage dispute over who authorized the disposal.