MYIMYI

Total Loss

When repair costs exceed the yacht's insured value or the vessel is completely destroyed

What is a Total Loss?

A total loss occurs when:

  • Your yacht is completely destroyed
  • Repair costs exceed the insured value
  • The vessel cannot be economically repaired

Types of Total Loss

Actual Total Loss The yacht is completely destroyed or damaged beyond repair.

Constructive Total Loss Repair costs exceed a percentage (typically 75-80%) of the insured value.

Settlement Process

  1. Adjuster assesses damage
  2. Repair estimate obtained
  3. Comparison to insured value
  4. Settlement based on Agreed Value or ACV

Related Terms

Agreed Value

Policy valuation method where you and insurer agree on your yacht's value upfront

Actual Cash Value (ACV)

Policy that pays depreciated market value at time of loss

Hull and Machinery

Physical damage coverage for your yacht's structure and equipment

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