How is pecuniary loss determined when property is destroyed?

• A. Replacement cost
• B. Fair market value at time and place of destruction; if FMV cannot be ascertained then cost of replacement
• C. Insurance payout
• D. Tax basis

Answer: (B)

Pecuniary loss is measured by the property's fair market value at the time and place of destruction, reflecting what a buyer would pay for the property in an open market given its condition. If FMV can’t be determined, the next best measure is the cost to replace the property with a similar item. This approach ensures the financial harm is captured accurately, balancing market value with the expense needed to restore the victim’s position. Insurance payout doesn’t set the loss amount—it's the payment received, which may cover part or all of the loss but isn’t the basis for calculating it. Tax basis is not used because it’s a tax-related value, not the value of the loss to the victim. For example, a destroyed car would be valued by what the car would fetch in the market; if that value can’t be determined, the replacement cost for a similar vehicle is used.