The second categorization, the "constructive total loss," is defined by Buglass as occurring when "the ship or goods insured are damaged to more than half the value, by any peril insured against." (12) In such a case, the assured may "abandon and recover for a total loss." (13) The Marine Insurance Act defines it as occurring when "the subject-matter insured is reasonably abandoned on account of its actual loss appearing to be unavoidable, or because it could not be preserved from
actual total loss without an expenditure which would exceed its value when the expenditure had been incurred."14 Certain policies thus determine a "constructive total loss" as that which would require repair expenses beyond an "agreed amount." (15)