How is the value of property damage determined?
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UPDATED: Jul 16, 2021
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Property damage valuation is an art form that may require the services of a professional or expert appraiser. If the property has been completely destroyed so that it is of no further use and has no salvage value, the measure of damages (or the amount you will get for your property damage) can be set at the fair market value of the property immediately before its loss. Generally, an injured party may recover for the loss or harm – both present and prospective (in the future) – which are the natural, necessary or reasonable result of the damage.
If the property can be repaired, the amount of damages can be set at the amount it costs to repair the property, plus the loss of its use by the owner. If the cost to repair the property turns out to be more than the fair market value of the property before the loss, the damages may be limited to the fair market value. In addition to the cost to repair or replace, plus loss of use, interest and loss of profits may also be considered when determining the total value of property damage.
If you are seeking recovery for property damage from an insurance company, you should seek the advice of an experienced insurance attorney. If the property damage was due to a car accident, see a car accident lawyer right away.