An actual total loss refers to complete destruction of insured property to the point where it is completely ruined, has irreparable damages, cannot be recovered, or the owner cannot access it in any way. This type of loss would usually be claimed for the maximum coverage.
As opposed to a partial loss, actual total loss results in the owner effectively losing the property as it is unrecoverable or unusable. For example, if a car being transported on a cargo ship sinks to the bottom of the ocean, that would represent a total loss. Upon filing a claim for this type of loss, the policyholder must give up all rights to the insured property in order to receive compensation for the maximum value of the property.
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