Diminished value sounds like a complicated concept but a helpful Hollywood property damage attorney can make it easy to understand. When property is damaged, it becomes less valuable.
For example, if a car is involved in a motor vehicle accident, the value of the car after the accident will be less than it was before the accident. Even if the car has been repaired to where it is “good as new,” it still will not be at the value that it was before the accident.
This is because potential buyers of the car are not going to pay as much for a vehicle that was involved in an accident as they would if it had not been involved in an accident. Consumers are still worried that the car may have some unknown damage, despite assurances that it has been fully repaired.
Types of Diminished Value Claims
There are three main types of diminished value claims. First, there is inherent diminished value. This is the case above, where a car that is “good as new” still has decreased worth due to its accident history. Next, there is repair-related diminished value.
While the car may drive again, if the mechanic uses low-quality parts or provides substandard repair, the car’s value will be lower than it was before the repairs. Finally, there is immediate diminished value. This is the resale value of the property after the accident but before any repairs are made.
When events like this happen, the insured may go to the insurer and try to file a claim, arguing that the insured property has decreased in value following damage. In Florida, this is rather difficult, because Florida law does not allow insureds to recover these benefits by result unless the insurance policy explicitly states that a claimant can recover benefits for diminution in value.
That is, the insured will be at the mercy of what the contract says. This is why it is very important to carefully review insurance coverage with a trusted Hollywood property damage attorney before accepting the terms.
What if My Policy Doesn’t Allow for Diminished Value Recovery?
In the event that the policy does not allow recovery for diminished value, the insured is not totally out of luck. Instead, the insured can seek what is called a “third-party claim” against the defendant who is responsible for the losses you suffered.
An experienced Hollywood property damage attorney can help you file this. Let’s suppose that in the car accident, the car was once worth $40,000 and is now worth $32,000 following repairs. The insured can seek compensation for the diminished value of the car by bringing a lawsuit against the defendant driver.
How a Skilled Hollywood Property Damage Attorney Can Help
Getting the maximum dollar amount for the diminished value of a property can be tricky, according to knowledgeable Florida property damage attorneys. This is because insurance adjusters may throw out a lower number than is deserved either due to ignorance or not wanting to payout. Additionally, the process of calculating the loss can be difficult.
If you are trying to do it on your own, you first want to determine the value of the car. This can be done by considering Kelley Blue Book. Find the value of the vehicle after repairs are completed. Then apply a 10% cap to the value, which will represent the maximum amount you can get in a diminished value claim. Then apply a damage multiplier.
Less damage will result in less diminished value, which means less money in your pocket. Finally, apply a mileage multiplier. The more miles on the car, the less money the insured will get back.