Question

Difference between actual total loss and constructive total loss ppt

Answer 1

Actual total loss and constructive total loss are two terms that are used in insurance.

Actual total loss is used to indicate that the insured object or property is beyond use even to the slightest extent. The owner of the object or property is completely deprived of the same because of its damage or destruction. Actual total loss is at times referred to as total loss.

Constructive total loss is used to refer to the cost incurred to repair a damaged item or property. In this case, only a part or some parts of the object or property are damaged. However, in this case, the repair cost must be more than the replacement cost or current market value of the item or property.