Constructive Total Loss
Summary of Constructive Total Loss
In marine insurance, a loss where cost of repair or recovery would exceed the value of the property were it to be saved or repaired. In British usage, an insured cannot claim a constructive total loss unless the costs of rehabilitation exceed 100 percent of the value; in the United States, however, a claim for constructive total loss can be advanced, in most cases, if the costs of saving or repair exceed 50 percent of the value.
(Main Author: William J. Miller)
Constructive Total Loss
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See Also
- Constructive loss
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