Custom and practice in the insurance industry with respect to casualty matters the term "total loss" unless defined within the policy differently means that the costs of repair exceeds the current fair market value of the item damaged.Example: Blue book value of a given car is $6,000 that is damaged. However, costs of repair are $8,300. The costs to repair exceed the car's present value. The car is a total loss. The property owner gets $6,000 if there is an applicable policy of insurance for the loss.