By Eli Goins · FL DFS #P159790 · Reviewed: · 1 min read
Short answer: Diminution in value is the loss of market value that remains even after your property is fully repaired. Most Florida property policies do not cover it, because they promise to repair or replace, not to restore market value, and courts have consistently agreed. Narrow exceptions exist in some commercial and high-value homeowner forms, so read your specific policy.
Why it's mostly not covered
Florida policies pay to repair or replace. The policy does not promise to restore market value.
Narrow exceptions
Some commercial policies, some high-value homeowner forms, and some auto physical-damage claims address diminution. Read your specific policy.
What to do if market value is an issue
- Document pre-loss value carefully
- Document repair quality
- Consider third-party-liability claims if someone else caused the loss