Exempt damages are estimates of damages for the remainder property that the appraiser and reviewer determine should not be offset by enhancements or benefits. Typically, exempt damages are cost to cure estimates for curative work the appraiser believes to be necessary for the remainder property to function.

The following situations are especially applicable in the consideration and determination of exempt damages:

where remainder properties must have curative work performed to restore functionality and the offsetting of enhancements will leave the property owner without the financial resources to perform the cure.
for the state to avoid the exposure of greater claims for damages if the cost to cure cannot be performed by the owner due to offsetting of enhancements.
to address safety and health issues that must be resolved for remainder properties.
to comply with Minute Order
0872
of the Texas Transportation Commission that requires adequate compensation be paid to property owners to re-fence their remainder properties.

It is emphasized that appraisers and reviewers should consider each situation individually to decide if certain damages or curative values qualify as exempt damages, and therefore must be exempted from the offsetting of values found for enhancements and benefits.