Total loss advantages
- Full Coverage A policy limit paid
- ACV plus depreciation holdback typically streamlined
- Simpler math, faster resolution
- Typically less scope dispute
Partial loss reality
- Scope-by-scope valuation
- Each line item negotiated
- Depreciation applied line-by-line
- Extended claim timeline
How carriers classify
Florida carriers use a damage-percentage threshold, typically:
- >75% damage: total loss
- 50-75%: discretionary
- <50%: partial loss
But classification is case-specific, considering:
- Rebuild cost vs. pre-loss value
- Structural integrity
- Code-compliance upgrade burden
Valued policy law
Florida has a valued policy law (Fla. Stat. 627.702) that requires carriers to pay the full policy amount on total losses from covered perils. This creates incentive for carriers to classify as partial.
Documenting total loss
- Contractor rebuild cost estimate
- Structural engineer report
- Code-upgrade cost analysis
- Pre-loss value documentation
- Damage percentage analysis room-by-room
Policyholder considerations
- Total loss is typically better financial outcome
- Partial loss may require extensive rebuild still (minus the policy limit benefit)
- Insurance-to-value matters: underinsured homes can hit policy cap regardless