This paper deals with the damage assessment for isolators of base-isolated building systems considering the torsion-coupling (TC) effect by establishing damage indices. The damage indices can indicate the reduction in lateral stiffness of the isolator story as explicit formulas in terms of modal parameters. In addition, the damage location, expressed in terms of the estimated damage index and eccentricities before and after damage, is also presented. Numerical analysis shows that the proposed algorithms are applicable for general base-isolated multi-story TC buildings. A procedure from the analysis of seismic response to the implementation of damage indices is demonstrated by using a numerical case. A system identification technique is employed to extract modal parameters from seismic responses of a building. Results show that the proposed indices are capable of detecting the occurrence of damage and preliminarily estimating the location of damaged isolator.