Holicent
VIP Contributor
Abandonment clause or condition clause in a property insurance contract, in some certain circumstances, allows the property owner to abandon damaged or lost property and still claim a full settlement amount.
This can be used as an alternative to an actual cash value clause. Although it may not be as attractive for policyholders because it does not allow for any additional coverage on top of the existing policy, it also eliminates the risk that a loss will be totally wiped out by the insurer if, in fact, the property was abandoned. If a policyholder abandons his or her car without reporting it to the insurance company and then files a claim for damage, he or she will receive only what is covered under his or her insurance policy. However, if there were additional coverage available through one of these provisions—such as an actual cash value (ACV) clause—the policyholder may be able to recover more money because of this clause.
This can be used as an alternative to an actual cash value clause. Although it may not be as attractive for policyholders because it does not allow for any additional coverage on top of the existing policy, it also eliminates the risk that a loss will be totally wiped out by the insurer if, in fact, the property was abandoned. If a policyholder abandons his or her car without reporting it to the insurance company and then files a claim for damage, he or she will receive only what is covered under his or her insurance policy. However, if there were additional coverage available through one of these provisions—such as an actual cash value (ACV) clause—the policyholder may be able to recover more money because of this clause.
