Total loss

{
  "id": "MLC-T-INS-003347",
  "term": "Total loss",
  "field": "Insurance and risk management",
  "definition": "A situation where the cost to repair damaged property exceeds its actual cash value or a specified percentage of its value, making repair economically impractical. In such cases, the insurer pays the policy limit or the actual cash value of the property, and the insured typically surrenders the salvage. This concept applies to both property and auto insurance claims.",
  "url": "https://mlchart.com/terminology/insurance/total-loss/"
}