What is the term used for relinquishing property and letting go of all legal rights with the intent to claim a total loss?

The term that refers to relinquishing property and letting go of all legal rights with the intent to claim a total loss is abandonment. In the context of insurance and property, abandonment occurs when an insured party decides to give up any future claims to the property and leaves it behind, often because it is considered a total loss or is no longer economically feasible to repair or keep. This action may also be associated with the understanding that the insurer takes over the rights to the property for potential salvage purposes.

This concept is important in the realm of insurance claims because it directly affects how the insurer can then process the loss and what responsibilities they may have regarding the abandoned property. By abandoning the property, the insured effectively communicates that they are no longer willing to maintain it, and it may signal the end of their relationship with that specific asset.