What is the difference in the value of property before loss and after restoration called?

The difference in the value of property before a loss and after it has been restored is referred to as betterment. Betterment occurs when the property is repaired or restored in such a way that its value after restoration exceeds its value prior to the loss. Essentially, it indicates that the property has been improved upon rather than simply being returned to its original condition.

In the context of insurance claims, betterment is important because insurers typically aim to restore individuals to their pre-loss conditions rather than upgrade their property. This is a key principle in insurance, ensuring that policyholders are not enriched by their claims.

The other terms in the choices relate to different aspects of valuation and property damage. Depreciation, for instance, refers to the reduction in value over time due to wear and tear, while damage assessment involves evaluating the extent of loss or damage to the property. Valuation generally refers to the process of determining the overall value of property but does not specifically address the comparison between pre-loss and post-restoration values. Hence, betterment is the most appropriate term for the situation described in the question.