Actual Total Loss

Dictionary Says

Definition of 'Actual Total Loss'

A loss that occurs when the insured property is totally destroyed or is damaged in such a way that it can be neither recovered nor repaired for further use, or the insured is irretrievably deprived of it. Usually, this indicates the maximum settlement possible according to the terms of the policy. 

Also known as "total loss."

Investopedia Says

Investopedia explains 'Actual Total Loss'

When an actual total loss occurs, the insured is not required to give the insurer notice of abandonment (i.e., the surrender of all rights, title and interest) in the insured property in return for the sum insured.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Abandonment

    1. The act of ...
  2. Abandonment Clause

    A clause in a ...
  3. Insurance Claim

    A formal request ...
  4. Casualty Insurance

    A broad category ...
  5. Worthless Securities

    Securities that ...
  6. Waiver Of Coinsurance Clause

    Language in an ...
  7. National Average Wage Index - NAWI

    An index ...
  8. 403(b) Plan

    A retirement ...
  9. Financial Intermediary

    An entity that ...
  10. Agent

    1. An individual ...

Articles Of Interest

  1. Will Filing An Insurance Claim Raise Your Rates?

    An accident can mean higher insurance costs - even if it wasn't your fault.
  2. Deducting Disaster: Casualty And Theft Losses

    If you've been a victim, your losses may be deductible. Find out how.
  3. Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  4. Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.
  5. In Small Business, Success Is Spelled With 5 "C"s

    Incorporating these steps will help your business thrive in a competitive market.
  6. Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  7. Is Loan Protection Insurance Right For You?

    This coverage can keep you from defaulting on your loans when you're in financial trouble.
  8. Selecting And Managing Insurance Payouts

    Find out which settlement option is right for you before you recieve your funds.
  9. Are High-Yield Bonds Too Risky?

    Despite their reputation, the debt securities known as "junk bonds" may actually reduce risk in your portfolio.
  10. Passing The Buck: The Hidden Costs Of Annuities

    These may look like good retirement vehicles, but beware of the fees buried in the fine print.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center