A vessel is involved in a casualty. The cost of property damage includes the __________.

Correct Answer: Option C — cost of labor and material to restore the vessel to the service condition which existed before the casualty

46 CFR § 4.03-5 defines property damage for casualty reporting as the cost of labor and material required to restore the vessel or property to its pre-casualty condition. This excludes consequential losses like lost revenue or third-party claims, focusing strictly on the physical restoration of the damaged assets.