What term refers to the decrease in property value due to damage while retaining some usable value?

The term that refers to the decrease in property value due to damage while still retaining some usable value is "diminution of value." This concept highlights the idea that even after property has sustained damage, it may still hold some worth or functionality, albeit reduced compared to its original condition.

Diminution of value specifically captures the essence of a property being less valuable than it once was without being rendered entirely useless. This is a crucial consideration in the insurance claims process and property appraisals, as it helps in determining the actual loss that a property owner faces after damage has occurred.

In other contexts, terms like depreciation refer to the natural decline in value of a property over time, loss of use describes the inability to use property as intended, and impairment could relate to a deficiency or tax related to property value. However, none of these terms encapsulate the specific situation of damage resulting in decreased value but some remaining utility as effectively as the concept of diminution of value does.