What is considered to be a "total loss" for insurance purposes?
Question Details: I have $64,174.59 worth of damages to my home but my policy is $75,200 (on my dwelling). Should it be a total loss or partial loss?
Answered 3 years ago|
Custom and practice in the insurance industry with respect to casualty matters the term "total loss" unless defined within the policy differently means that the costs of repair exceeds the current fair market value of the item damaged.
Example: Blue book value of a given car is $6,000 that is damaged. However, costs of repair are $8,300. The costs to repair exceed the car's present value. The car is a total loss. The property owner gets $6,000 if there is an applicable policy of insurance for the loss.
The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you go to AttorneyPages.com
and retain an attorney to represent you.