Loss of Value Theory

Loss of Value Theory refers to the idea that a person or entity experiences a decline in worth or functionality over time, particularly due to damage or depreciation. In practical terms, this means that when an item or asset is harmed, its value can drop significantly, impacting financial assessments, insurance claims, or legal cases. This theory is often applied in contexts such as property damage, where the focus is on determining how much value has been lost as a result of specific incidents, helping to quantify losses and inform compensation decisions.