Constructive total loss principle: policy terms govern abandonment and recovery costs that render preservation unreasonable. Constructive total loss arises where insured property is reasonably abandoned because actual total loss seems unavoidable or because preservation would cost more than the property's value when preserved; determination is a question of fact. The statutory definition is subject to any express policy provision, and inconsistent policy clauses must be given effect when construing constructive loss and abandonment or recovery-related questions.