constructive total loss (CTL) definition

constructive total loss (CTL)

In insurance, not an 'actual total loss' but a situation where (1) the actual total loss appears unavoidable (as in case of perishable goods), or (2) a partial loss has occurred to an extent that the property is beyond economical repair (cost of restoring it exceeds its insured value). In CTL cases, the insured may (if terms of the insurance policy permit) abandon the property by giving a 'notice of abandonment' to the insurer who then assumes all rights to the property.

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