The amount for which an asset can be sold at the end of its useful life.
In insurance circles, this term commonly refers to the scrap value of damaged
property. In property insurance, salvage value (e.g., scrap value) will be subtracted
from any loss settlement if the insured retains the damaged property. In extra
expense coverage, the salvage value of property purchased for temporary use
while repairs are made will be deducted in determining the amount of loss recovery.