Where the results of repairs or replacement as a result of the loss results in receiving something better than had previous to the loss the difference is known as betterment
A term used to express the difference in the value of property before loss and after restoration If a 20-year roof is damaged by an insured peril and it has to be replaced in its 15th year and the restoration renews the 20-year life expectancy, the owner has obtained a 15-year betterment in the roof Without replacement cost insurance on the roof, the owner is expected to reimburse the insurance company for the "betterment" entailed in the restoration Also see Improvements and betterments
A reduction in claim compensation for a vehicle component which is worn; typically applied to items such as tires, batteries, and exhaust parts; much like pro-rating
An improvement that increases property value as distinguished from repairs or replacements that simply maintain value
an improvement to real property that is more extensive than ordinary repair or replacement and that increases the value of the property
The betterment of something is the act or process of improving its standard or status. His research is for the betterment of mankind. = improvement. improvement, especially in someone's social and economic position for the betterment of sb/sth
An improvement that increases a property's value as opposed to repairs that maintain the value
Physical improvements beyond mere maintenance or repairs that augment the value of a property
The measurable amount by which a person is better off financially after a loss because a new item has replaced the old one
Term used to describe additional benefit which may accrue to the party whose vehicle is being repaired For instance, a tire may need to be replaced But at the time of the accident, the wear and tear had only reached 40 percent The insurance company may decide that they are only responsible for 60 percent of the replacement cost Another example is with an upgrade in equipment such as a radio If the customer is obtaining a higher quality radio than the damaged one the insurance company may only cover the cost of the damaged radio
A capital expenditure that improves a plant asset, such as placing siding on a building The cost of a betterment is debited to the plant asset account