1.2.7.3.5. Damages. Because damage to the remainder is automatically included in the before and after valuation, damages are not separately appraised in federal acquisitions. However, to properly estimate the value of the remainder after the acquisition, appraisers must understand the concept of damages for federal acquisition purposes. The legal terminology associated with damages is confusing, perhaps because the same terms have been applied to different concepts under federal and state laws. Under federal law, damage to a property’s market value is either compensable and must be considered, or non-compensable and must be disregarded.33 The term severance damages has been used to describe those damages for which the United States must pay compensation. The term consequential damages has been used to describe damages for which the United States is not obligated to pay compensation. For the purposes of these Standards and to reduce confusion, appraisers should use the term compensable rather than severance and non-compensable instead of consequential. Further discussion regarding the proper development of appraisals concerning partial acquisitions is found in Section 1.7.