The insurance company withheld thousands in depreciation. You completed the repairs. Now you need to demand it back—and they have to pay.
⚠️ Recoverable depreciation is your money. Carriers hold it until repairs are done—then they're obligated to release it. Policyholders who don't know the process leave $5,000-$25,000 unclaimed every year.
On replacement cost policies, the insurer pays in two stages. First, they pay actual cash value (ACV): the replacement cost minus depreciation for age and wear. They withhold the depreciation amount—often $5,000 to $25,000—until you complete the repairs. That withheld amount is recoverable depreciation.
Once repairs are done and you submit the required proof, the carrier must release it. If they don't, you're entitled to demand it. The money is contractually yours. Many policyholders never request it because they don't understand the process or miss deadlines. See our guide on how insurance companies calculate settlements and our negotiation guide for escalation steps.
Full cost to replace roof and damaged interior
25% held back for age of materials
Paid after you complete repairs and submit proof
In this example, the policyholder received $24,300 initially. After completing repairs and requesting recoverable depreciation, they received the additional $8,100. If they hadn't requested it, that $8,100 would have stayed with the carrier.
Policies vary, but most require:
Check your policy and the claim paperwork the carrier sent. They should specify exactly what proof they need. If it's unclear, request it in writing.
Some carriers delay, demand excessive documentation, or deny recoverable depreciation on technicalities. You have rights:
If you've completed repairs and provided reasonable proof, the carrier cannot indefinitely withhold recoverable depreciation. State insurance departments take these complaints seriously.
Finish the work covered by the claim. Keep every invoice, receipt, and contractor documentation. Take photos of completed work.
Your claim documents should show the depreciation withheld. If not, request a formal breakdown from the carrier. Know the exact amount you're owed.
Send a formal request for recoverable depreciation. Include: claim number, policy number, proof of completion (invoices, receipts), and a clear statement of the amount owed. Send via email and certified mail.
Carriers typically have 30-60 days to respond. If they delay or deny without valid reason, escalate to the supervisor and consider filing a complaint with your state insurance department.
Our documentation templates and guidance help you properly request and recover the $5,000-$25,000 in depreciation your carrier is holding.
Start Your Claim ReviewIf your policy is actual cash value (ACV), there is no recoverable depreciation—you receive only the depreciated amount. Replacement cost policies are different: you get ACV first, then recover the depreciation after repairs. Check your declarations page. If you have replacement cost coverage and the carrier withheld depreciation, that amount is recoverable.
Recoverable depreciation is the portion of depreciation the insurance company withholds from your initial payment. On replacement cost policies, you receive actual cash value (ACV) first—replacement cost minus depreciation. After you complete repairs, you can recover the withheld depreciation, often $5,000-$25,000.
After you complete the repairs. Most policies require proof that repairs were done (receipts, contractor invoices, photos) and sometimes that the work cost at least the amount of the depreciation. Submit a request for recoverable depreciation with your proof. Carriers typically have 30-60 days to pay.
Typically: completion of repairs, invoices or receipts showing what you paid, and sometimes proof that repair cost equaled or exceeded the replacement cost value. Some carriers require an invoice matching the line items. Check your policy and your claim documents for specific requirements.
They can deny if you don't complete repairs, don't provide required proof, or exceed policy deadlines. They cannot deny based on arbitrary reasons when you've met the policy conditions. If denied incorrectly, demand a written explanation, rebut with documentation, and escalate to your state Department of Insurance.
Typically $5,000-$25,000 depending on claim size and the depreciation amount withheld. Roof claims often have $8,000-$18,000 in recoverable depreciation. Total loss or large claims can have $20,000-$40,000 or more.
Yes. Most policies require you to complete repairs and submit for recoverable depreciation within 180 days to 2 years of the loss. Some policies are stricter. Check your policy and claim documents. Don't miss the deadline—unrecovered depreciation is lost forever.