# The insured’s washing machine was damaged by a covered loss. At the time of the loss, the actual cash value (ACV) of the machine was \$300. Repairs would cost \$250. The scrap metal dealer would pay \$100 for what remains of it. Which one of the following calculations correctly determines whether or not the washing machine was a constructive total loss?

Insurance

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## The insured’s washing machine was damaged by a covered loss. At the time of the loss, the actual cash value (ACV) of the machine was \$300. Repairs would cost \$250. The scrap metal dealer would pay \$100 for what remains of it. Which one of the following calculations correctly determines whether or not the washing machine was a constructive total loss?

Options

A. \$300 ACV – \$100 salvage value = \$200. This loss was a constructive total loss.

B. \$300 ACV – \$100 salvage value = \$200. This loss was not a constructive total loss.

C. \$300 ACV – \$250 repairs = \$50. This loss was a constructive total loss.

D. \$300 ACV – \$250 repairs = \$50. This loss was not a constructive total loss.