Short Answer

The value of a damaged or destroyed tree is not determined by a single universal formula. A qualified tree appraiser considers the purpose of the appraisal, the type of loss, the characteristics and condition of the tree, its location and function, its marketability, and the extent of the damage.

Depending on the circumstances, a tree may be valued according to its marketability, the cost to reproduce its function and use, or its contribution to the income of a going concern.

Why Would a Tree Need to Be Appraised?

Trees may need to be appraised for many different reasons. The appropriate approach depends on why the value is being determined and how the tree was affected.

Tree and landscape appraisals may arise in matters involving:

• A neighbor cutting down or damaging a tree

• Trespass

• Vehicle or equipment damage

• Construction activity

• Insurance claims

• Eminent domain

• Property disputes

• Landscape damage

• Accidental removal

• Damage to high-value trees or plant material

• Legal claims involving the loss or injury of trees

An appraisal should address the facts of the particular situation rather than assume that every damaged tree should be valued in the same way.

What Factors Can Affect the Value of a Tree?

Many characteristics may be relevant when determining tree value.

Depending on the assignment, an appraiser may consider factors such as:

• Tree species

• Size

• Age or maturity

• Overall condition

• Location

• Function within the landscape

• Relationship to the property

• Marketability

• Extent of damage

• Remaining useful life

• Whether the tree can recover

• Whether replacement is practical

• The purpose for which the appraisal is being performed

The importance of each factor depends on the circumstances of the appraisal.

A large mature tree, for example, cannot necessarily be valued simply by finding the price of a small replacement tree at a nursery. The function, size, location, condition, and characteristics of the lost tree may all be relevant to understanding the loss.

Is Tree Value the Same as Replacement Cost?

Not necessarily.

Replacement cost may be relevant in some situations, but it is not automatically the same as the value of the tree that was lost.

A mature tree may provide shade, screening, aesthetics, environmental benefits, landscape function, or other uses that cannot be immediately reproduced by planting a small nursery tree.

At the same time, an appraisal should not assume that every mature tree is worth the full cost of attempting to replace it with an identical large specimen.

The appropriate approach depends on the purpose of the appraisal and the facts of the loss.

Can a Damaged Tree Still Have Value?

Yes.

A tree does not necessarily lose all of its value simply because it has been damaged.

The appraiser may need to consider:

• The severity of the damage

• Whether the tree is likely to recover

• How the damage affects its structure

• Whether its appearance or function has been permanently reduced

• Whether corrective treatment is practical

• Whether the damage creates additional risk

• How much of the tree's former contribution remains

In some cases, the issue may involve a reduction in value rather than a complete loss.

How Is the Value of a Completely Destroyed Tree Determined?

When a tree has been destroyed or removed, the appraiser may have to reconstruct information about the tree from the available evidence.

That evidence may include:

• Photographs taken before the loss

• Measurements

• Stump dimensions

• Property records

• Landscape plans

• Previous arborist reports

• Tree-care records

• Images from the property

• Witness information

• Remaining tree material

• Information about the species and condition of the tree

The quality of the available evidence can affect how confidently the tree's characteristics and condition can be evaluated.

This is one reason photographs and other records from before the loss can be particularly valuable.

Does the Species of Tree Matter?

Yes. Species can be one of the factors considered in a tree appraisal.

Different tree species have different characteristics, growth rates, expected longevity, availability, landscape uses, and desirability.

However, species alone does not determine value.

Two trees of the same species may have very different values because of differences in size, condition, location, function, or the circumstances of the appraisal.

Does the Location of the Tree Affect Its Value?

It can.

A tree's contribution often depends partly on where it is located and what function it performs.

For example, a tree may provide:

• Shade

• Screening or privacy

• Landscape structure

• Aesthetic value

• A visual focal point

• Environmental benefits

• Protection or buffering

• Functional value to a property or business

The same type of tree in two different settings may not necessarily make the same contribution.

An appraisal should consider the tree within the context of the property and the purpose of the assignment.

What If Someone Improperly Cut Down My Tree?

Unauthorized tree cutting or removal can raise both arboricultural and legal questions.

A tree appraiser can evaluate the characteristics of the tree and provide an independent opinion concerning its value. The appraisal may become one part of a larger legal matter involving ownership, trespass, damages, or other issues.

The arborist's role is to provide expertise regarding the tree and its value.

Questions about legal damages, ownership rights, penalties, or liability should be addressed by a qualified attorney because those issues depend on the law applicable to the particular situation.

How Are Trees Appraised After Construction Damage?

Construction can affect trees without immediately killing them.

Damage may involve:

• Root cutting

• Soil compaction

• Excavation

• Trenching

• Grade changes

• Equipment impacts

• Bark or trunk damage

• Branch removal

• Changes in drainage

• Changes to the tree's growing environment

Some construction-related damage may not become fully apparent until later.

An appraisal may therefore require more than simply deciding whether the tree is currently alive.

The arborist may need to evaluate the extent of the injury, the tree's condition, its likely response, and whether the damage has reduced its value or useful life.

Can Tree Value Be Important in an Insurance Claim?

Yes.

Insurance claims involving trees may raise questions about both the cause of the loss and the value of what was damaged.

A consulting arborist may assist with questions concerning:

• Tree condition

• Tree failure

• Extent of damage

• Whether a tree can recover

• Landscape loss

• Tree appraisal

• Whether replacement is practical

• The value of damaged or destroyed plant material

Independent arboricultural expertise can help insurers, adjusters, property owners, and other parties better understand the technical tree-related aspects of a claim.

Why Can't You Just Use the Price of a Similar Tree From a Nursery?

A nursery price can be useful information in some situations, but it may not fully represent the value of a mature tree that has been damaged or destroyed.

A nursery typically sells trees of sizes that can reasonably be grown, transported, and planted. A mature landscape tree may be far larger and may have been performing important functions on the property for many years.

At the same time, the value of a mature tree should not simply be inflated because a similar tree of the same size would be difficult or expensive to replace.

A professional appraisal considers the appropriate valuation approach and the actual circumstances of the loss.

Why Is an Independent Tree Appraisal Important?

Tree-value disputes can become emotional, particularly when a mature or significant tree has been damaged or removed.

One property owner may believe a tree was nearly priceless, while another party may believe it had little monetary value.

A professional appraisal provides a more objective basis for evaluating the loss.

The appraiser's role is to examine the available facts, apply appropriate professional judgment, and provide an opinion that can be explained and supported rather than simply choosing a number that favors one side of a dispute.

When Should a Tree Appraiser Be Contacted?

It can be helpful to contact a qualified tree appraiser as soon as it becomes apparent that a significant tree or landscape loss may lead to an insurance claim, property dispute, legal matter, or other disagreement concerning value.

Whenever possible, preserve evidence before the site changes.

Useful information may include:

• Before-and-after photographs

• Measurements

• Images of the stump or remaining tree

• Tree-care records

• Property photographs

• Landscape plans

• Reports

• Receipts or documentation concerning previous tree work

• Information concerning how and when the damage occurred

If the damaged tree or plant material is still present, an on-site evaluation may provide information that becomes unavailable after removal.

About Marty Shaw, RCA

Marty Shaw, RCA is a consulting arborist, tree and plant appraiser, investigator, author, and expert witness with decades of experience addressing complex tree and landscape matters.

His consulting work includes tree, landscape, and plant appraisals for matters involving trespass, insurance claims, property disputes, construction damage, tree loss, and other situations in which an independent professional opinion regarding tree value may be needed.

Contact Marty Shaw About a Case:

Email: expert@greenseasonconsulting.com. Call: (615) 794-4377

This information is provided for general educational purposes and is not legal advice. Questions involving legal damages, liability, ownership, trespass, or other legal rights should be discussed with a qualified attorney.