The first question most people ask is, does diminished value exist? The answer is YES, in every state except for Michigan. It is the best kept secret in the insurance industry. In 1994 the state of Florida conducted a research study where they estimated 20 billion as the estimated amount of “uncompensated losses” of diminution of value, currently it is said that that amount could be between 60 to 100 billion dollars in 2014. When you approach any insurance company 9 out of 10 times asking about diminished value, the first response is that it doesn’t exist or we don’t do that. This is done so you don’t try to pursue the claim. When you approach the insurance company with an appraisal report for diminished value and a letter of claim, they accept and pay as the supreme courts of all states and insurance commissioners have mandated by law they must pay or will loose the ability to sell insurance in that state.