What term is used to describe a temporary or permanent improvement that increases the value of a property?

The term "betterment" is used to describe a temporary or permanent improvement that increases the value of a property. This concept is crucial in insurance and property management, as it involves enhancements that extend the useful life, productivity, or utility of the property beyond its original condition. Betterments can include renovations, major repairs, or additions that not only restore the property but also elevate its overall worth and functionality.

Understanding betterments is important in an insurance context, particularly when evaluating claims. When an insurance policyholder makes upgrades or improvements after a loss, insurance companies often assess whether these changes have resulted in betterment, which can influence repair costs and the total settlement amount.

The other terms, while related to property improvements, do not accurately capture the specific nature of increasing a property's value through enhancements. For instance, "restoration" typically refers to returning something to its original condition rather than enhancing it, and "upgrade" suggests improvement but may not always imply an increase in value in the broader financial sense. "Benefit," on the other hand, is too vague and doesn't specifically speak to property improvements.