What type of loss would the insurer consider the ship if structural problems make it cost more to repair than its total value?

When determining the type of loss when structural problems render the cost of repair greater than the ship's total value, the insurer would consider this a constructive total loss. A constructive total loss occurs when the cost to repair or salvage the property exceeds its market value. Instead of a complete destruction of the ship or a loss that is definitively total, this scenario reflects a situation where the vessel is not physically lost but is deemed economically impractical to repair due to high costs relative to its total worth.

In contrast, an actual total loss would imply that the ship is completely destroyed or lost beyond recovery. A particular average loss pertains to damage to a specific item or property, where the insurer only pays for the loss of that particular item, while a general average loss relates to a voluntary sacrifice made to save the overall voyage for all parties involved, which does not apply in this instance. Thus, given the specifics of the scenario regarding the cost of repairs, the classification as a constructive total loss is appropriate.