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 Sep 18, 2012 03:11 pm Post Subject: Replacement Cost Depreciation Request
I completed the work on my roof & am not sure how to submit my depreciation request on my invoice & what the insurance company requires on my invoice. I have RCV on my policy & listed myself as the General Contractor. Thank you for any advice you can provide.
Posted: Tue Sep 18, 2012 07:47 pm Post Subject:
You submit your invoice for the materials you purchased to complete the roof repairs, plus the cost of any laborers you hired to perform the work. You may add a reasonable amount of labor for your own contribution to the repairs. But the total labor amount cannot exceed what a licensed contractor would have charge for the same work.
In other words, if a contractor would have charged $7000 for labor and materials (and their profit "holdback"), your invoice cannot exceed that amount. If the job would have been completed in one day by four experienced laborers at a cost of $2500, the fact that your laborers took three days and cost $3000 is inadequate to support reimbursement for that higher amount. (By the same token, if your regular wage is $250 per hour as a lawyer, for example, you cannot bill $250/hour as a roofing laborer.)
You will be paid the difference between what you have already received and the total invoice you present to the insurance company (accounting for your deductible which was withheld from your initial payment). You cannot simply ask for $xxx as depreciation without documentary support.
Posted: Thu Jan 10, 2013 08:28 pm Post Subject:
recent damage to the bed of my truck amount s to approx. 3500.00 ,how much does this deminish the value of the
Truck after it is repaired ?
before value was approximately $22,000.00
Posted: Fri Jan 11, 2013 12:01 am Post Subject:
No one here can answer that question for you. You will need to have your vehicle appraised in person for that information. Just take it to a dealership and ask them.
Posted: Wed Mar 27, 2013 11:15 pm Post Subject:
You know. The record needs to be set straight... we are not looking to profit from our loss, we just want to be treated fairly. So we pay month after month, year after year, thousands, tens of thousands... then we have some "event" (which in our own little world is hugely important) and then we have these insurance companies (who faithfully accept our checks throughout the years) tell us that we are willing to give you a little bit of what you paid out back but minus this and that (not without receipts) and always minus the deductible.
No one is ever going to make me feel bad for any insurer. The most profitable industry in the world. (maybe behind gambling and porn but still up there) Just Google "insurance industry profits"
Posted: Thu Mar 28, 2013 12:10 pm Post Subject:
So we pay month after month, year after year, thousands, tens of thousands... then we have some "event"
This demonstrates Mike B's lack of understanding about property and casualty insurance.Mike B seems to think he should be storing up some kind of reserve account for the eventual payment for "some event". But that's not the way P&C insurance works. You are paying for coverage one year at a time. You have a loss or you don't. If you have a loss during the policy year, if it's covered, you get a payment. If you have no loss, life is good, but you paid for the peace of mind that allowed you to sleep at night instead of lying awake wondering what might happen if . . . .
we are willing to give you a little bit of what you paid out back but minus this and that
More proof of the failure to understand how P&C insurance works.When you go to a restaurant for a nice dinner, and it becomes your favorite place, do you think that the $50 you are paying for your steak and beverage each time is building up some kind of reserve back in the kitchen? Certainly, an 8 ounce filet mignon, a 12 ounce imported beer, a baked potato, salad, vegetable, roll & butter, and a dessert doesn't cost the restaurant that much money.
When you come in the next time, but have no money to pay for a meal, because you've been such a good customer over the past several years, do you expect them to give you a free meal? The restaurant may not be as profitable as the insurance company, but both are in business for the same reason: to make money.
The restaurant stays in business by serving good food at a reasonable price. The insurance company stays in business by paying claims. The restaurant serves good food one meal at a time. The insurance company collects premiums and pays claims one year at a time. Neither business gives you a credit for the unused value.
That's what Mike B seems to think insurance companies should do.
Posted: Tue Apr 23, 2013 07:39 am Post Subject: roof hail damage recoverable depreciation.
What is a certificate of completion for a roof repair. My roofer has completed the roofing job and I need to be reimbursed for my recoverable depreciation. The roofing contractor says he has never been asked for this by an insurance company before. :?:
Posted: Tue Jul 15, 2014 08:28 pm Post Subject: Recoverable Depreciation
my insurance company drop me after my claim, it took awhile to get the roof done, but its done. can i still get the recoverable depreciation,even though Iam no longer with them?
Posted: Wed Jul 16, 2014 04:04 am Post Subject:
can i still get the recoverable depreciation,even though Iam no longer with them?
An insurance company will usually put you on notice how long you have to submit the proper documentation to recover the difference. Call you carrier or agent and ask.Posted: Wed Jul 16, 2014 03:49 pm Post Subject:
it took awhile to get the roof done
Are we talking about months or years? Normally, a person has 180 days to complete repairs unless granted an extension for cause by the insurance company. To get the extension of time, one must first contact the insurance company. That probably did not happen in this instance. And the insurance company is not obligated to grant an extension, but usually will when the circumstances dictate -- inavailability of materials is one, but I've never seen a shortage of roofing materials, even after a disastrous fire or tornado event.Add your comment