- A loss with damages so comprehensive that the asset is deemed irreparable and without value. In cases of a total loss, the insurer is generally expected to pay the maximum settlement as mandated by the insurance policy. Also known as a "constructive total loss."
totalled off, constructive loss, damaged beyond repair, write off, constructive total loss
Related Terms and Acronyms
- Exposure — Definition,
- How much liability an insurer takes on when they write an insurance policy.
- Fire Insurance — Definition,
- Insurance that covers losses from fire damage to insured assets.
- Incurred But Not Reported (IBNR) — Acronym,
- An estimate of how much an insurance company owes to policyholders for losses that have already occurred but have not yet been reported.
- Insurable Value — Definition,
- The total amount that an asset can be insured for.
- Insured Value — Definition,
- What an insurer will pay to replace an insured asset.
- Loss Settlement Amount — Definition,
- The percentage of damages an insurer is contractually obligated to pay for after a claim.
- Property Insurance — Definition,
- Insurance that provides coverage for damages to property from a number of perils.
- Unvalued Marine Policy — Definition,
- Insurance that covers a marine asset to an unspecified dollar amount.
- Valuation Clause — Definition,
- A clause in an insurance contract that states how much an insurer is willing to pay for an asset after an insured event.
- Valued Marine Policy — Definition,
- Insurance that covers a marine asset up to a specified amount.