When property is damaged but not destroyed, pecuniary loss equals what?

• A. Replacement cost
• B. Market value decrease
• C. Cost of repairing
• D. Depreciation only

Answer: (C)

When property is damaged but not destroyed, pecuniary loss is the amount needed to restore it to its pre-damage condition. That makes the cost of repairing the best measure of the economic impact, because it directly reflects the money required to bring the property back to its original state. Replacement cost would be for fully replacing the item, market value decrease looks at the property's value in the market after the damage, and depreciation accounts for wear and age—none of which isolate the actual repair expense as the financial loss. So the repair cost best represents the economic loss from the damage.