by info_2 » Thu Apr 16, 2009 02:36 am
Recoverable depreciation is the difference between the cost to replace or repair property and its value before the damage occurred. Recoverable depreciation is the maximum amount of money you can recover from your homeowners insurance company after you have some repair or replacement work on you home. Items that your recoverable depreciation insurer considers recoverable and non-recoverable must be mentioned in the loss settlement provision of your homeowners policy.
Recoverable depreciation can be an important part of your homeowners insurance policy, especially if you need extra money. Homeowners insurance has 2 specific clauses that you may include in your policy. One clause concerns recoverable depreciation.
Recoverable depreciation can be an important part of your homeowners insurance policy, especially if you need extra money. Homeowners insurance has 2 specific clauses that you may include in your policy. One clause concerns recoverable depreciation.
How can you claim recoverable depreciation?
Here are a few simple steps you may follow in order to make your recoverable depreciation insurance claim:
- Review the policy: A claim for recoverable depreciation cannot be made on the actual cash value (ACV). Look at your policy carefully, and look for the recoverable depreciation clause.
- Gather evidence: Your insurance company will require evidence that you repaired your home or replaced the property before they will allow a recoverable depreciation claim. The adjuster will need documents that will help him confirm the value of the house after the damage has occurred.
- Contact the insurance agency: Once you've contacted the insurance company, either online or over the phone, the adjuster will do an appraisal of your home in order to estimate the amount of damage they will compensate you for.
- Depreciation check: Once the insurance company has allowed your claim, they will send you a check. The amount of the check should be the sum of your assets and depreciation minus the deductibles. The check may be made out to you, your mortgage lender, or both of you depending on the value of the check. If it is made out to you and your lender the check must be endorsed by the bank, which will deposit your share into your account.
Related readings
- When can you claim recoverable depreciation?
- Recoverable depreciation after hail damage
- Is there a deadline to file for recoverable depreciation?
- Mortgage settlement and recoverable depreciation
I have a claim that includes some other cosmetic work. To give an example.
My recoverable depreciation is 1K, My deductible is 2.8K. Total settlement is 13.9K. I don't have any mortgage on the house. The first insurance check settlement amount - deductible - recoverable dep = 10.1K. Now my question is if I decide to get the necessary repairs within the 10.1K amount, do I have to still care about recoverable depreciation? I am willing to forgo the recoverable depreciation by trying to fix everything using the first check. Do I still need to submit the work receipts to insurance company if I don't care about getting the recoverable expense? Can the claim close once the timeline to file for recoverable depreciation lapses (usually 180 days).
My recoverable depreciation is 1K, My deductible is 2.8K. Total settlement is 13.9K. I don't have any mortgage on the house. The first insurance check settlement amount - deductible - recoverable dep = 10.1K. Now my question is if I decide to get the necessary repairs within the 10.1K amount, do I have to still care about recoverable depreciation? I am willing to forgo the recoverable depreciation by trying to fix everything using the first check. Do I still need to submit the work receipts to insurance company if I don't care about getting the recoverable expense? Can the claim close once the timeline to file for recoverable depreciation lapses (usually 180 days).
Posted: Tue Nov 23, 2010 07:28 pm Post Subject: Recoverable depreciation
hail storm July 19 2010 my letter says we have $10.855.61 in Recoverable depreciation but must claim in 180 days Dec.19 2010.
We have hard winter here and cant do anymore repairs until spring, what should we do? also we have to do the work or have it done before they will pay right? we dont have that kind of money so we cant do anything, we live in a town of about 800 people and there are really no contractors. My husband and I have done all our own work on the house. (except the new roof and that took 4 months to get done!) contractors dont like to drive far to small towns.... thank you for your time!
Posted: Thu Nov 25, 2010 02:54 am Post Subject:
My husband and I have done all our own work on the house. (except the new roof and that took 4 months to get done!) contractors dont like to drive far to small towns.... thank you for your time!
You can ask for an extension.
The funny thing is . . . most contractors are desperate for work these last couple of years (or three or four), and would probably drive to the ends of the earth for a little work and a check.
I would think that if there was roof damage, that you would have repaired that as soon as possible, since . . . in five or six months . . . winter is coming.
Posted: Fri Nov 26, 2010 03:00 pm Post Subject: recoverable depreciation
I am not sure why I pay for replacement cost on my policy, for them to hold back the depreciation . I know and understand ACV-dep= check and then you get the dep. back after work is done. But heres the problem,
1. You pay extra $$ for this coverage
2. They hold $$ back and say you can have it back after repair,or replacement is done.
3. You do the replacement yourself and got some personal property items on sale or down graded ,now here it comes...
4. the deny your RECOVERABLE DEPRECIATION
5. They say well we paid ACV and you only spent that amount.
6. Lets talk about fraud and scam I think the insurance co. have full protection for all their scams and loop holes and they say its us , and fraud because we can not make $$... What about insurance co? Insured pay extra $$ for this coverage, an by loop holes we lose the recoverable dep. and they get to keep our extra preiume $$..
Posted: Fri Nov 26, 2010 03:08 pm Post Subject: wbearp
I would suggest that you call your adjuster , they will make extensions in cases like yours. Most insurance co. will work with you.
Posted: Sat Nov 27, 2010 02:11 am Post Subject:
They say well we paid ACV and you only spent that amount.
and
I think the insurance co. have full protection for all their scams and loop holes and they say its us , and fraud because we can not make $$... What about insurance co? Insured pay extra $$ for this coverage
The only thing you fail to understand is something fundamental to all insurance: INDEMNITY.
This is the premise behind all insurance. To restore you to whole -- the condition you were in prior to the loss without profit or gain.
You had a roof over your head. Contract states the indemnity will be "replacement cost". They pay you ACV (which you apparently understand). You use that money to effect the repairs and need no other money to complete the job. What more do you want? You once again have a roof over your head.
You, like many insureds, think that just because you pay for "replacement cost" you are entitled to more than the amount that it takes to replace the damaged items(s). Where is the fraud in that? Asking for more than you actually paid to replace the item is FRAUD.
The other part you don't seem to understand is the ALEATORY nature of insurance. We don't enter into an insurance contract with an expectation of paying in $1000 and always collecting $1000 before the end of the policy year. In insurance, there is an unequal giving and receiving that you selectively ignore.
I doubt you would be here complaining as you are, when your loss was paid for 100% if the company initially paid you $10,000 for the ACV and then paid you another $10,000 when you submitted a bill for $20,000 in total repair cost.
You are demanding a profit when your loss did not exceed the payment you already received. Keep it up! We'll get to read about you being prosecuted for insurance fraud for submitting altered receipts.
And if you don't want to pay for Replacement Cost, don't! Demand a policy that only pays actual cash value for all losses. But after you do that, don't come back here whining and complaining that you can't effect the repairs or replace the damaged property for that amount when you have a loss.
If you want it your way, order your policy at the Burger King drive through. Be sure to ask to have all the pickles, lettuce, tomatoes, onions, and cheese on that Whopper HO-3 taken off.
Posted: Sat Nov 27, 2010 02:18 am Post Subject:
Years ago, I had a car burglarized. The thief took all my camping gear from the trunk. Tent, 0 degree down sleeping bag, backpack, boots, other stuff. All of it worth about $700-$800. Homeowner's paid me $350 up front, and another $650 after I ACTUALLY repurchased all of the items I had stolen. If they paid me the $1000 up front, gosh, I might not have used the money to purchase the camping gear that was previously so important to carry in the trunk.
Once I'm reimbursed for my purchases, I am free to sell them and pocket the money. Before then, I am entitled only to my ACV loss. That's what I've paid for.
Posted: Wed Mar 30, 2011 07:42 pm Post Subject: RIWoHdbBjkqYMITrRH
Recoverable depreciation.. Bully :)
Posted: Fri Apr 22, 2011 11:40 am Post Subject: BSYRbgLjsOr
Recoverable depreciation.. Peachy :)
Posted: Wed Apr 27, 2011 07:36 am Post Subject: PnmfVHuxVHOKzxrj
Recoverable depreciation.. Great! :)
Posted: Thu Jun 02, 2011 10:40 pm Post Subject: oMyKizngDTYfNUacPi
Recoverable depreciation.. Bully :)
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