A damage disclosure statement is required in certain states to inform the buyer of any structural damage to the vehicle. It includes the inspection date, a description of the vehicle, its owner, and any major damage that requires repair or replacement. While most structural damage is obvious from a visual perspective, hidden damage isn't always apparent. The damage disclosure statement protects the seller from a lawsuit. It also protects the buyer from investing in a vehicle that may require extensive repairs about which they were not made aware.