Occurs when sound cargo is sold at a reduced price because of an unfavourable association with goods, part of the same cargo (e.g. tea), damaged by an insured peril. The ‘sentimental’ loss on the sound goods is uninsured.
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The loss of property which has favorable associations (e.g., an engagement ring) may cause suffering disproportionate to the monetary value of the object lost. Conversely property with unfavorable associations (e.g., cargo which, though undamaged, has been involved in a shipwreck) may lose value as a result of such associations. Insurances are considered not to cover sentimental losses.