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Actual Total Loss

   Also found in: Dictionary/thesaurus, Legal, Acronyms, Encyclopedia, Wikipedia 0.01 sec.
Actual Total Loss
The total amount that an insurance company pays to a policyholder when an insured item is completely destroyed, damaged beyond use, or disappears without explanation. It is also called total loss.


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An Actual Total Loss refers to the circumstances where the location is apparent and a Constructive Total Loss refers to the circumstances where a loss is inferred.
It would only apply where the structure would have been deemed a constructive total loss or an actual total loss even in the absence of the damages caused by the covered peril.
 
 
 
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