What does Actual Total Loss mean?

Actual Total Loss is when the policy holder’s property is being injured, damaged to such an extent is of no further use. It is the case of a building for example which due to an external factor such as fire has become totally unusable, and it cannot be reconditioned in any way. Also, when a car is stolen and after efforts it still has no chances of being found, this goes under Actual Total Loss as well.

Actual Total Loss explained

Actual total loss or just simply total loss indicates that the insurer will pay towards the policy holder the maximum payable sum of money. One characteristic of the Actual Total Loss is that in order to be eligible for the maximum amount payable, one doesn’t have to step towards renunciation of the rights of the respective property.

Thus, abandonment is not a condition which has to be fulfilled in order to proceed to the rights stipulated in the insurance policy.