Total Loss or Write-off

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Total Loss or Write-off It is the complete destruction of the property insured under a particular policy, when the property is beyond economic repair that is exceeds its insured value, and simply replacing the old property with a new equivalent is more cost-effective. Such a loss may be an "actual total loss" or a "constructive total loss". Actual total loss, also known as "total loss," occurs when an insured property is totally destroyed, lost, or damaged to such an extent that it cannot be recovered. Constructive total loss is declares when an insured property estimated costs for its repair exceed the insured value of the property. In some some jurisdictions, a property may be a total loss if the repair costs would exceed a percentage (e.g., 80%) of the property's value. Payment is made equivalent to the property actual cash value which is the market value based upon several factors, such as its pre-loss condition, age, options, mileage for cars, etc. minus any applicable deductible. Must insurers work with a third-party (experts) to help determine the actual cash value. In the case of total loss, the insured party should qualify to receive a payout from the insurance company for the full insured value of the property. In the event that your property is declared a total loss and the property has been leased or financed, as opposed to being owned outright. It is the lending company or leasing agency that holds the vehicle title that will receive the claims settlement. If the settlement amount is more than what you owe, you will receive the difference. If it is less than what is owed, you will be responsible for the remaining debt.  Insurance companies lose money when paying out the total insurable value (TIV) and, as a result, they will not do so until they are completely satisfied that all terms have been met. Once your property has been declared a total loss and a settlement has been accepted, your insurance company will take possession of the property in most cases. Depending on the law of the jurisdictions where you reside, you may be able to keep the property or buy it back from your insurer in order to repair it an or keep using the property. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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