Injury or damage that is the result of an insured peril is what people usually refer to when they talk about different types of insurance losses. Anything that your insurance company offers to cover and anything that your insurance policy does cover is known to be a peril of this sort. So, if you get your house insured, vandalism, theft and fire may be included in these perils. It is for the company to determine whether or not the damage or peril was drastic enough due to which their services should be availed and that is when they consider the types of insurance losses. There are 2 types of insurance losses.
The first of these is partial loss. When the amount to repair a product or item is less than the insured amount it is said that the loss incurred would be partial. A replacement cost may be used in these cases and what happens in these types of insurance losses is that the person who suffered the loss is compensated as the company provides them with an item which was just as valuable as the stolen or damaged good. If it is insured for actual cash value the good’s insured value drops instead.
The second of these types of insurance loss is total loss. Sometimes what happens is that the loss incurred may be worth more than the value of the good when it was insured and in these cases the insurance loss is then said to be total and in some cases though the loss may not be total it would be said to be total because the insurance company would be aware of the possibility of the item, good or product causing trouble in the future as well. So, if, for example, your car breaks down and the loss is not total but it is quite substantial, the company would refer to these types of insurance losses as total because they know that it will cause you problems in the future as well. Where these types of insurance losses are concerned your company would pay you the insured value though the deductibles would be deducted from these as well. So if something was worth $100 and the insured value was $70 and your deductibles are $10- you would receive a total of $30 because it will have fixed your product or item in the a
mount that is deductible. This is only the case where you decide you still want to keep the damaged product though. If you decide you do not, they will sell the parts of the product that can still be used and saved by your insurance policy.
These are the two main types of insurance losses and these are terms are referred to by companies all around the world. Though other types of insurance losses may exist but you will not come across them too frequently because a loss, generally, only can be total or partial. What is done with the product or the good depends upon your choice.