14. Does my ability to recover Diminished Value depend on who was at- fault?

Your ability to recover Diminished Value may depend on who was at fault, depending on various factors. There are two entirely different grounds for recovering the loss in value which apply depending on your status as either a first party or a third party claimant. First parties are usually seeking recovery of their damages from their own insurance company, whether the insurer pays for Diminished Value depends upon the terms of the insurance policy and the state’s interpretation of that policy and perhaps the insurer’s activities during the claim process. Third parties usually seek damages from the at-fault driver and/or their insurer for the loss in value as part of the property damages caused by the negligent driver. Most states allow for such recovery against the negligent party under what is known as ‘Reinstatement of Torts’.

Category: DV FAQ

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