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This is good information by knutesteen
But as you suggest, in the end, it, like most things, is negotiable to a degree, with this information providing a baseline for valuation. Fortunately I did not have to go through (to my knowledge) a formula in Texas, and I was also with the potential to assert a personal injury claim (which I did not), so that also provided leverage. I made sure in these situations to be sure the claims professional knew I was a defense attorney and almost always was on the other side of the discussion, which I believe also served me well.