A Georgia Supreme Court ruling from this summer has paved the way for homeowners to now be able to receive diminished value damages after their home is damaged. This is similar to the diminished value damages Georgians have long been able to claim when their vehicles are damaged in a wreck. As real estate disputes attorneys, we are pleased to see the Court rule in favor of Georgia consumers.
The ruling makes sense and now closes a gap that has long existed between homeowner claims and claims available in other types of property damage cases. For too long, homeowners who have faced such situations as severe flood damage or other catastrophic damage to their homes have only been able to get replacement cost damages but had to make sure to disclose the previous damage caused by the incident when selling their homes. This led to severe losses to homeowners in the form of lost value of their home even after all repairs were made.
This ruling means insurance companies in Georgia now have to make homeowners whole just as they long have had to do in other types of claims.