Partial Loss

What Does Partial Loss Mean?

A partial loss refers to damage to an insured property that is not total, meaning the property can still perform its intended function. The damage does not exceed the coverage limit of the insurance policy.

Insuranceopedia Explains Partial Loss

In insurance, losses are categorized into two types: total and partial.

Total Loss is further divided into:

• Actual Total Loss: This occurs when the property is completely destroyed, such as a house being entirely consumed by fire, rendering it uninhabitable.
• Constructive Total Loss: This occurs when the property, while not entirely destroyed, can no longer serve its intended function, or when the cost of repairs exceeds the insured value.

Partial Loss is also divided into two types:

• Partial Average Loss: This refers to damage that affects only part of the property, such as a fire destroying one room of a house but leaving the rest intact.
• General Average Loss: This is a voluntary loss incurred to save the insured property, such as intentionally hosing down a room to extinguish a fire.