Can you make a diminished value claim for hail damage to your home?
Why homes are different from cars
Diminished value is the drop in market value after something is damaged and repaired. It comes up mostly in auto claims, where a vehicle with an accident history can sell for less even after repair. Homeowners policies are written to restore the property: pay to repair or replace what was damaged with like kind and quality materials. They do not include a payment for stigma or lost resale value.
Where homeowners do have leverage
- Full repair, not a patch. If damage is widespread, the claim should cover replacing whole slopes or the whole roof rather than a patchwork. See matching.
- Cosmetic damage. Dents on metal roofing or siding that hurt appearance but not function can be excluded by a cosmetic endorsement. Read yours. See cosmetic damage exclusions.
- Unrepaired damage. If you take the money and do not repair, buyers' inspectors will find the damage, and a future insurer may exclude it.
Selling after hail
A new roof with a transferable warranty, a permit and documentation of the insurance claim usually helps a sale rather than hurting it. Keep the paperwork. Sellers should disclose known material problems; ask your real estate attorney or agent about your obligations.
If you meant your car
Vehicle diminished value claims follow auto insurance rules, which in Georgia have their own history. Ask your auto insurer or an attorney.
For the home claim itself, see hail size and roof damage.