Insurance 101 – Chapter 14 – Volume 45 – More Diminution of Value and Automobile Material Damage Claims

More Diminution of Value and Automobile Material Damage Claims

Mabry applies to all insurance claims, not just auto, and if a repaired building is diminished in value because of the repairs the insurer may be required to pay for those diminution in value damages. Of course, since a repaired structure is usually more valuable than an old building, this issue will probably never be raised. Unlike an automobile, which will be depreciated by any accident no matter how skillful the repair job, the fact that a fire-damaged structure has been rebuilt with new for old will usually not diminish the structure’s value. The obverse of the Mabry case will not happen, since a repair that increases value beyond that before the fire will never raise the issue and there is nothing in an insurance contract requiring the insured to return to the insurer the difference between the value before the loss and the increased value after the loss.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library


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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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