All buildings become damaged during use, usually this wear and tear damage is minor and easily fixed, however there are some things that can do a lot of damage in a short time. These are starquakes, bombs, skrashers and scuzzer explosions.
Maintenance scuzzers can repair damaged buildings in most cases but if enough damage is done the building will become a charred skeleton of itself, leaving you no option but to demolish it and build another. In the case of certain adjustable rooms you may be able to recover furniture for later use before demolition.
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