Plain and simple, the title reads that an insurance claim was paid out on it. What the damage to warrant the claim is, only the insurance company knows. Except, of course, who got the money. They'll never tell you the honest truth.
One thing before buying, make sure you can insure it. I asked my agent about salvage-typetitles when I was looking and he said it can sometimes be difficult, if not impossible, to insure them.