What does salvage refer to in terms of insurance claims?

Salvage in the context of insurance claims refers to the recovery of value from damaged assets. This process involves assessing and selling parts or materials of a damaged item to recoup some financial value. For instance, if a vehicle is deemed a total loss, the insurance company might sell the salvageable parts to help offset the cost of the claim. This is an essential aspect of claims management, as it helps to minimize the insurer's losses by recovering some of the value from property that can no longer be used in its original function.

The other concepts provided do not relate to salvage. Determining coverage limits pertains to understanding the extent of the policy benefits and the maximum payout for claims. Evaluating policy conditions involves examining the responsibilities and obligations outlined in the insurance agreement. Documentation of insurance fraud concerns capturing illicit activities to prevent false claims. Salvage specifically focuses on recovery post-damage, making it a unique and critical aspect of the claims process in insurance.