Valuation
Severance damages: the loss to the land you keep
When part of a property is taken, the rest is often worth less than it was. That reduction is compensable, it is measured as part of the before and after difference, and it is routinely understated.
How they are measured
A difference, not an estimate of harm
Severance damages are not estimated directly. They fall out of the before and after calculation: the whole before, the remainder after, the difference less the value of the land taken. That structure matters, because it means the question is never how bad the harm feels. It is what the market would pay for the remainder, given the harm.
The evidence is therefore comparable sales. Properties similar to the remainder, similarly affected, that have sold. Where such sales exist, severance damages are demonstrable. Where they do not, the appraiser must reason from related evidence, and the conclusion becomes a matter of professional judgement that a review appraiser can test.
What is not compensable
The limits, which are real
General damage shared with the area
Harm suffered in common with surrounding properties, such as increased traffic on a public road, is usually not compensable. Only damage special to this property, arising from the taking of part of it, qualifies.
Harm with no taking at all
If nothing is taken from your property, severance damages are not available even where the project affects you. Those claims, if any, arise under inverse condemnation and a much stricter test.
Temporary construction disruption
Noise, dust and disrupted access during construction are generally treated as temporary and non compensable, though a temporary construction easement is separately paid for.
Business losses
Lost trade is usually not severance damage. A few states compensate business damages by statute, and those provisions are specific and narrowly drawn.
How reports go wrong
Four ways severance damages disappear
| Technique | What it looks like | Why it is questionable |
|---|---|---|
| Stated as none, without analysis | A single line concluding no damage to the remainder | A conclusion of zero needs the same reasoning as any other number |
| Narrow larger parcel | Adjoining land you use together excluded from the valuation | If it is one economic unit, damage to all of it is in scope |
| Cost to cure substituted | A sum to rebuild a driveway, instead of the loss in value | A cure that does not restore the lost utility has not cured the loss |
| After value taken before the project | The remainder valued as a clean smaller parcel | The remainder will exist next to the project, and must be valued that way |
Questions about severance damages
The agency says there are no severance damages. Is that the end of it
No. It is an opinion, and an opinion that must be supported. An appraisal review or an independent appraisal is how it gets tested.
How large are severance damages typically
There is no typical figure. They depend entirely on what the taking did. On some frontage strips they are nil; on a severed commercial site they can exceed the value of the land taken several times over.
Do I have to prove the damage myself
You need evidence, which in practice means an appraisal. The burden and its allocation vary by jurisdiction, but as a practical matter the party asserting a figure needs support for it.
Can severance damages be offset by benefits
In many states, yes, where the benefit is special to this property rather than general to the area. The rules differ enough that this must be checked locally.
Get a valuation question answered
If an offer has arrived and the number does not match what you believe the property is worth, the appraisal behind it is the place to look. Start with the pages below.