Which term refers to the extra value added to property after loss and restoration?

The term that refers to the extra value added to property after loss and restoration is betterment. This concept arises when a property is restored or repaired in such a way that it exceeds its original condition or market value before the loss occurred. Betterment typically relates to improvements that enhance the overall functionality, aesthetics, or worth of the property beyond what it was before the damage.

In the context of insurance and claims, it is essential to distinguish between mere restoration to the original condition and improvements that provide added value. Policyholders may seek compensation for the costs associated with repairs, but insurance products are generally designed not to allow for profit from a loss. If repairs produce betterment, the insurer might adjust the claim appropriately to reflect the additional value created through these enhancements.

Understanding the difference between betterment and other terms, such as restoration value, appreciation, or increased value, helps clarify the criteria for compensation and the implications for policyholders and adjusters alike.