Diminution In Value Cases In All 50 States

This document provides an exhaustive summary of how diminution in value claims are treated across all 50 states. Diminution in value occurs when a damaged, yet repaired, item is deemed to be worth less than its value prior to the loss. This comprehensive chart details the legal approach to first-party claims regarding diminution in value, crucial for subrogation professionals navigating the complexities of varying state laws.

Diminution in value is categorized into three types:

• Immediate Diminished Value: The value loss immediately after an accident before any repairs.
• Inherent Diminished Value: The loss of value after complete and professional repairs, also known as "stigma damage."
• Repair-Related Diminished Value: Additional value loss due to incomplete or subpar repairs.

It elaborates on first-party claims, governed by contract law and the terms of the insurance policy, versus third-party claims, governed by tort law. Highlighting the disparity among states, it includes specific legal precedents and insurance policy considerations, with special attention to states like Georgia, where insurers are required to compensate for diminished value under certain conditions.

This guide is an essential resource for legal professionals, insurance adjusters, and subrogation specialists, offering insights into the nuanced treatment of diminished value claims across the United States.