Claim Fundamentals
By Mike — Licensed GC & Public Adjuster — 10 min read
In my 30 years settling claims, this is the single most common mistake I see homeowners make: they get their first insurance check, complete their repairs, and never go back to collect the rest of their money. That held-back money is called recoverable depreciation, and it is yours.
When you have a Replacement Cost Value (RCV) policy, your insurance company pays out your claim in two stages. The first payment is the Actual Cash Value (ACV) — the depreciated value of the damaged item. The second payment, released after you complete repairs, is the recoverable depreciation — the difference between ACV and RCV.
Simple Math:
Roof replacement cost: $25,000
Less depreciation withheld: $8,500
Less your deductible: $2,500
First check (ACV): $14,000
Recoverable depreciation you can claim back: $8,500
Warning: Most RCV policies have a strict deadline — typically 12 to 24 months from the date of loss — to complete repairs and submit a claim for recoverable depreciation. Miss this window and the money is gone. Check your policy immediately.
You must complete the work before you can claim recoverable depreciation. Partial repairs typically only yield partial release of funds.
Collect every paid invoice from every contractor, subcontractor, and supplier involved in the repair. Keep digital copies.
Send your insurer a formal letter requesting release of recoverable depreciation, along with all invoices and photos of completed work.
Always follow up by email or certified mail. Create a paper trail for every communication with your insurer.
If the insurer releases less than expected, you have the right to appeal. Request their detailed worksheet and challenge any line items you disagree with.
This is not an accident. Insurance companies know that a significant percentage of homeowners will accept the first ACV check, complete their repairs using personal savings or financing, and never come back to collect recoverable depreciation. That unreleased depreciation stays with the insurer. I have seen homeowners walk away from $12,000 or more simply because no one told them to go back and file.
Document everything before, during, and after repairs with photos and videos.
Keep a repair journal with dates, contractor names, and completed scope of work.
Submit your recoverable depreciation claim as soon as repairs are complete — do not wait.
If your insurer disputes amounts, request their full depreciation schedule in writing.
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