Process & Workflow

Betterment

Betterment is a reduction in a claim payment (or recovery) reflecting that a repair left the property in better condition than before the loss, for example, new parts replacing worn ones.

Because indemnity restores the insured to their pre-loss position rather than an improved one, betterment adjustments account for added value from new-for-old repairs. In subrogation, betterment can affect the recoverable amount, so it factors into how damages are itemized in a demand.