Severance Damage in United States

Practical Information

Note: Some of this information was last updated in 1982

The damage that property sustains when a portion of it is taken in condemnation, and the remaining property becomes less valuable owing to change in size, shape, and utility. An award of severance damage is allowable only if there is unity of ownership and unity of use. In some states, contiguity is also a requisite; that is, the remaining parcel must be contiguous (in actual contact or adjoining) with the part taken. When a parcel is totally absorbed in condemnation proceedings, no severance damage exists. Speculative and doubtful damages (in U.S. law) are compensable.

In estimating the amount of severance damage, the appraiser must determine the highest and best use to which the property may be put. The damage cannot be greater than the full value of the property. Special and direct benefits to the property are generally considered as an offset against the amount of severance damage.

(Revised by Ann De Vries)

What is Severance Damage?

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