Actual versus constructive total loss
An actual total loss is a building that is physically gone: burned to the ground or leveled. A constructive total loss is a building still partly standing that, for practical or economic reasons, cannot be repaired, or where the cost to repair plus required code upgrades meets or exceeds what it would cost to rebuild. Florida treats both as total losses, which matters because a total loss carries stronger payment rights than a partial one.
Why the total-loss label matters in Florida
On a total loss of the dwelling, Fla. Stat. 627.7011 requires the insurer to pay replacement cost coverage without any reservation or holdback of depreciation, and Florida's valued policy law (Fla. Stat. 627.702) fixes the insurer's liability for a total loss from a covered peril at the amount stated on the policy. That means no actual-cash-value-first, repair-as-you-go holdback, and under the valued policy law no argument that the home was over-insured. Carriers often resist calling a badly damaged home a total loss precisely to keep the depreciation holdback and repair-by-repair control that apply to a partial claim.