Diminished Value

[Toby]

In many states (including my home state of Georgia), any diminished value of your building after a claim is excluded from coverage.  So, for example if you have a fire in your home and it becomes less valuable at re-sale as a result, your insurer may not be responsible for that part of your financial loss.  They protect themselves from that financial liability by excluding that portion of your loss from coverage.

But what's good for the goose is NOT good for the gander when it comes to diminished value.  While insurers may not pay you for diminished value, they will certainly hold previous claims against you, even if you were not the owner of the home when the claims were made.

Here's a great article by insure.com about the various data that insurers maintain about past claims, and how they use that data to charge new owners of a property potentially higher rates for insurances.

https://www.insure.com/home-insurance/past-claims.html