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A PHP 4,800,000 all-risks policy on a warehouse and its contents remains in force. On a storm date, 40% of the building's value and 20% of the contents are destroyed. The replacement cost to cover the destroyed portions is PHP 1,920,000 for the building and PHP 240,000 for the contents, totaling PHP 2,160,000. The salvage value of the remaining usable portion is PHP 700,000. The insured timely notifies the loss and files proof of loss within the policy period. The insurer denies the claim on the ground that there is no "loss" because only a portion of the property was damaged. (a) Identify the controlling doctrine to determine whether a "loss" has occurred under PD 612 as amended by RA 10607. (b) Compute the amount recoverable under the policy, given the facts and assuming standard salvage deduction and a deductible of PHP 150,000, with policy limits not exceeded.