A separately insured item will be an actual total loss when the subject matter of insurance is destroyed or where the Policyholder is irretrievably deprived of the subject matter of insurance.

The Policyholder may claim a constructive total loss when the subject matter of insurance is reasonably abandoned to the Insurer on the account of its actual total loss appearing to be unavoidable or because it could not be preserved from such actual total loss without an expenditure that would exceed its value when recovered/repaired.