In
insurance, a
total loss or
write-off is a judgment, by the insurer, that the lost value or repair cost of a damaged property exceeds the value of its
policy, resulting in what it concludes is a "total loss" or "constructive total loss" A
constructive total loss factors other incidental expenses beyond repair, such as
salvage. Policies covering homes, vehicles and other non-
investment assets subject to
depreciation typically pay the insured only a fraction of the cost of replacing the property, meaning they could become "total losses" even though some value remains. About one in seven
car accident claims results in a "total".