What Does Partial Loss Mean?
A partial loss refers to damage to an insured property that is not total, meaning that it does not prevent the property from performing its function nor does the damage exceed the coverage limit of the insurance policy.
Insuranceopedia Explains Partial Loss
There are two types of losses in the context of policy insurance: total and partial.
Total loss is further subdivided into two types: actual and constructive. An actual total loss occurs when the property is totally destroyed, such as when a fire has obliterated a house and rendered it entirely inhabitable. A constructive total loss happens when the property is not totally damaged but can no longer function as it is supposed to. It may also occur when the cost of repairs exceeds that of the insurance.
There are also two types of partial loss: partial average loss and general average loss. A fire that destroyed a room but not the entire house would fall under partial average loss. General average loss, on the other hand, is a voluntary loss but one that is taken on in order to save the property, for example, hosing down a room to put out a fire.