This paper deals with the adaptive finite element analysis of structural failure. A gradient-enhanced damage model has been chosen to simulate material degradation. Since this model is regularized in the post-peak regime, the finite element solution does not suffer from pathological mesh dependence and thus converges to an objective solution upon mesh refinement. However, the error analyses have shown that the error in the nonlocal equivalent strain field becomes dominant during the post-peak loading stages. The accuracy of the nonlocal equivalent strain field (and the corresponding damage quantity) also greatly influences the accuracy of the quantity of interest. Two error measures have been proposed. The goal-oriented error estimates have provided similar error distributions, although some small differences have been found in the softening regime. Objective error estimates, together with adaptive criteria, have been used to perform automated h-adaptivity during computation.