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Abandonment Clause

What is 'Abandonment Clause'

A clause in a property insurance contract that, under certain circumstances, permits the property owner to abandon lost or damaged property and still claim a full settlement amount. If the insured party's property cannot be recovered, or the cost to recover or repair it is more than its total value, it can be abandoned and the insured party is entitled to a full settlement amount.

Explaining 'Abandonment Clause'

This type of insurance clause typically comes into play with marine property insurance, such as boats or watercraft. If a property owner's ship is sunk or lost at sea, the abandonment clause affords the owner the right to essentially "give up" on finding or recovering his or her property and subsequently collect a full insurance settlement from the insurer.


Further Reading


Anchor, float or abandon ship: exchange rate regimes for accession countries
papers.ssrn.com [PDF]
… ABSTRACT Anchor, Float or Abandon Ship: Exchage … Group 2).3 Following the November 1999 Helsinki summit, the two-tier system was abandoned and … Second, the Treaty includes an “enabling clause” that allows limited ECB reform in what effectively is a single-issue Inter …

The determinants of abandoned M&As in the banking sectorThe determinants of abandoned M&As in the banking sector
papers.ssrn.com [PDF]
… ABSTRACT Anchor, Float or Abandon Ship: Exchage … Group 2).3 Following the November 1999 Helsinki summit, the two-tier system was abandoned and … Second, the Treaty includes an “enabling clause” that allows limited ECB reform in what effectively is a single-issue Inter …

Rehabilitation of abandoned housing projects: A comparative analysis between the law and practice in Peninsular Malaysia and the Republic of SingaporeRehabilitation of abandoned housing projects: A comparative analysis between the law and practice in Peninsular Malaysia and the Republic of Singapore
www.tandfonline.com [PDF]
… ABSTRACT Anchor, Float or Abandon Ship: Exchage … Group 2).3 Following the November 1999 Helsinki summit, the two-tier system was abandoned and … Second, the Treaty includes an “enabling clause” that allows limited ECB reform in what effectively is a single-issue Inter …

Risk allocation and flexibility in acquisitions: The economic impact of material-adverse-change (MACs) clausesRisk allocation and flexibility in acquisitions: The economic impact of material-adverse-change (MACs) clauses
papers.ssrn.com [PDF]
… ABSTRACT Anchor, Float or Abandon Ship: Exchage … Group 2).3 Following the November 1999 Helsinki summit, the two-tier system was abandoned and … Second, the Treaty includes an “enabling clause” that allows limited ECB reform in what effectively is a single-issue Inter …

State Control in International Trade and FinanceState Control in International Trade and Finance
www.jstor.org [PDF]
… ABSTRACT Anchor, Float or Abandon Ship: Exchage … Group 2).3 Following the November 1999 Helsinki summit, the two-tier system was abandoned and … Second, the Treaty includes an “enabling clause” that allows limited ECB reform in what effectively is a single-issue Inter …

Abandonment, entrapment, and neoclassical realism in Asia: the United States, Japan, and KoreaAbandonment, entrapment, and neoclassical realism in Asia: the United States, Japan, and Korea
academic.oup.com [PDF]
… ABSTRACT Anchor, Float or Abandon Ship: Exchage … Group 2).3 Following the November 1999 Helsinki summit, the two-tier system was abandoned and … Second, the Treaty includes an “enabling clause” that allows limited ECB reform in what effectively is a single-issue Inter …

Real options methodology in public-private partnership projects valuationReal options methodology in public-private partnership projects valuation
www.doiserbia.nb.rs [PDF]
… ABSTRACT Anchor, Float or Abandon Ship: Exchage … Group 2).3 Following the November 1999 Helsinki summit, the two-tier system was abandoned and … Second, the Treaty includes an “enabling clause” that allows limited ECB reform in what effectively is a single-issue Inter …



Q&A About Abandonment Clause


How does abandonment work?

Abandonment works when a party terminates an agreement because another party fails to meet its obligations under the contract.

Why would someone want to give up on their ship at sea?

The abandonment clause gives people who own ships at sea an option when they are unable to find their ship after it sinks. They can give up on finding their ship and collect all of their money back from their insurer instead of having nothing left over after trying unsuccessfully for years.

What does "abandonment" mean in this context?

Abandonment means giving up on finding or recovering your property.

Who has access to this type of insurance?

Property owners have access to this type of insurance.

What is abandonment clause?

A clause in a property insurance contract that, under certain circumstances, permits the property owner to abandon lost or damaged property and still claim a full settlement amount. If the insured party's property cannot be recovered, or the cost to recover or repair it is more than its total value, it can be abandoned and the insured party is entitled to a full settlement amount.

How much money do you receive if you abandon your property?

You will receive a full settlement amount from your insurer if you abandon your property.

What are the four main points in this article?

The four main points are as follows.

What are some examples of abandonment?

Some examples include terminating a lease early due to landlord's failure to make repairs; cancelling a service contract because cable company failed to provide service; and ending employment due to employer's failure to pay wages owed after notice was given by employee.

When would you use abandonment?

You might use abandonment when you want protection from failing performance by your counterparty or from non-performance by your counterparty who has already performed his/her obligation under the contract."

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