by ed.doboszenski » Wed Aug 25, 2010 02:04 pm
We had a claim. Now, we discovered 3 additional items were damaged. The Insurance Co. paid us with no issues, but deducted an amount for "recoverable Depreciation". We already replaced the items and used the actual receipts for the additional claim, so why the recoverable depreciation?
Posted: Wed Aug 25, 2010 03:52 pm Post Subject:
You posted this in the Auto Forum.
You need to call the adjuster and ask.
Posted: Wed Aug 25, 2010 03:54 pm Post Subject: Thanks
Wow! I was hoping you would help me get some information before I did that. I hope you don't get paid for this.
Posted: Wed Aug 25, 2010 06:36 pm Post Subject:
I was hoping you would help me get some information before I did that.
There is no reason I can see from your post as to why it was taken... they is why I stated that you should simply call the adjuster and ask.I hope you don't get paid for this.
I think I earned about 10 cents for that. :?Posted: Wed Aug 25, 2010 08:46 pm Post Subject:
Well, thanks for making me insurance smart.
Posted: Wed Aug 25, 2010 11:12 pm Post Subject:
I moved it to the correct forum...Ed, sounds to me like your adjuster simply made a mistake, if you had already replaced the items AND had already provided the receipts..just give them a call and they should send you out the with held depreciation, if not, ask why and let us know and we'll see if we can't figure it out together..
Posted: Mon Aug 30, 2010 03:26 pm Post Subject:
The only way there could be an adjustment for "Recoverable Depreciation" is if your property was insured for ACTUAL CASH VALUE and not Replacement Cost.
Actual Cash Value = Replacement Cost minus Depreciation
Most property policies use replacement cost as the valuation for personal property. Structural damages might only be covered for ACV.
You don't exactly state what the insurance payment was for, but things like "the roof" are covered according to ACV, so the claimed amount would be reduced by depreciation, since it is a maintenance issue (i.e., wear and tear). Furniture, fixtures, clothing, appliances, those things are normally covered according to Replacement Cost.
So were the claims for personal property or physical property/structural things?
Posted: Thu Sep 02, 2010 02:48 pm Post Subject:
Max: "The only way there could be an adjustment for "Recoverable Depreciation" is if your property was insured for ACTUAL CASH VALUE and not Replacement Cost." - Sry, have to disagree. This actually tells me that he has a replacement policy. dont confuse depreciation with recoverable depreciation.
there are home owner policies cover replacement on the roof w/ no depreciation. we replaced several old roofs last year during a hail storm. lots of happy folks as you can imagine. Depends on the company and product. FYI
recoverable depreciation by definition means that it's "recoverable". they paid you ACV (actual cash value) for your property, if your policy covers at full replacement, the adjuster is waiting on you to send in documentation that you have or plan to replace those items. They will then send you the additional difference. Tcope is correct, ask your adjuster...may be a communication issue.
Recoverable depreciation is common these days and usually found in the policy. It keeps insurance companies from paying duplicate claims on the same damage and keeps everybody honest. Its simply a two part settlement.
Some home owner policies limit how long you can wait to recover, so dont wait 6 months and then request the difference, find out if you have a time line.
Posted: Thu Sep 02, 2010 03:56 pm Post Subject:
if your policy covers at full replacement, the adjuster is waiting on you to send in documentation that you have or plan to replace those items. They will then send you the additional difference.
Yes, that's what I was referring to. Just misstated the obvious up front by inadvertently reversing the terms. Thanks.
Posted: Thu Sep 02, 2010 07:45 pm Post Subject:
:-)
Posted: Wed Nov 30, 2011 04:53 pm Post Subject: recoverable depreciation
When the homeowners insurance gave me breakdown of how the came up with the payment amounts there was an $1876 recoverable depreciation.Now my question is, after my work is completed and my contractor gives me his paperwork to submit to them to get back those monies,must his figures meet exactly what the insurance figures are,or can they be slightly higher without a big problem??? ,thank you! Carole
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