What is an abandonment clause in insurance?

It is found in different types of insurance policies, such as homeowners, cars, and boats. Under the abandonment clause, the insured party or property owner has the right to abandon a damaged or lost property if the property cannot be repaired or if the cost to do so is higher than the value of the property.

What is the legal definition of abandonment?

To meet the legal definition of abandonment, an owner must take clear, decisive action that indicates they no longer want their property. Inaction is not enough to demonstrate that the owner has abandoned the property, even if non-use has perpetuated for years. The legal definition of "abandonment" is key to understand an abandonment clause.

Can a property owner abandon a damaged or lost property?

Under the abandonment clause, the insured party or property owner has the right to abandon a damaged or lost property if the property cannot be repaired or if the cost to do so is higher than the value of the property. Work with your insurance company when you file a claim for damaged or lost property.