Total Loss

Definition

  • 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."

Synonyms
totalled off, constructive loss, damaged beyond repair, write off, constructive total loss

Acronyms
TL, Ltot

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.
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