Actual Total Loss

AAA

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 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.

RELATED TERMS
  1. Waiver Of Coinsurance Clause

    Language in an insurance policy that says the insurance company ...
  2. Worthless Securities

    Securities that have a market value of zero. Worthless securities ...
  3. Abandonment

    1. The act of surrendering a claim to, or interest in, a particular ...
  4. Casualty Insurance

    A broad category of coverage against loss of property, damage ...
  5. Insurance Claim

    A formal request to an insurance company asking for a payment ...
  6. Abandonment Clause

    A clause in a property insurance contract that, under certain ...
Related Articles
  1. Taxes

    Deducting Disaster: Casualty And Theft ...

  2. Insurance

    Will Filing An Insurance Claim Raise ...

  3. Insurance

    Do You Need Casualty Insurance?

  4. Fundamental Analysis

    What are some examples of how cash flows ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center