In which situation would a policyholder face a total loss claim?

A total loss claim occurs when an insured property is rendered completely unusable or is irreparably damaged, and this situation typically arises when the insured property is stolen. In this context, if the policyholder's property is stolen, it is as if they have lost the entire value of that asset, fulfilling the definition of a total loss.

This aligns with how insurance policies typically respond to theft claims, treating them as total losses since the insured individual no longer possesses the item, regardless of whether they can replace it or not. It emphasizes the idea that the loss is not just about physical damage but also about the loss of ownership and use of the asset.

The other scenarios presented do not meet the criteria for a total loss. Partial damage suggests that the asset can still be utilized or repaired, while a policy being renewed or an asset being sold does not pertain to loss in value or ownership due to theft or destruction.