A more thorough explanation:

Constructive total loss is a term used in insurance and marine underwriting. It refers to a situation where the cost of repairing a damaged property would exceed its value. In other words, the property is considered a total loss even though it is not completely destroyed.

For example, if a car is damaged in an accident and the cost of repairs is more than the car's value, the insurance company may declare it a constructive total loss and pay the policyholder the car's actual cash value instead of repairing it.

In marine underwriting, constructive total loss is defined as damage to a vessel that would cost more than half of its value to repair. This is because repairing a damaged vessel at sea can be very expensive and time-consuming, and it may not be worth the cost.

Overall, constructive total loss is a way for insurers and underwriters to determine when it is more cost-effective to declare a property a total loss rather than repairing it.