When is salvage value most often calculated in the insurance process?

Salvage value is typically calculated at the time of a claim for the total loss because it directly relates to the insurance process of determining the financial implications of a loss. When a claim is filed for total loss, the insurer evaluates the damaged property to ascertain if it can be salvaged or if it's a complete loss. The salvage value represents the estimated recovery amount from any remaining value of the damaged property, which the insurance company can potentially sell or use.

Understanding the salvage value at this specific point in the claims process aids in calculating the final payout to the policyholder. It is crucial for insurers and insured individuals to know how much can be recouped from the property to correctly adjust the claim amount. Thus, it is an essential step in evaluating the total loss and determining the final settlement amount.