Why was my first check so much smaller than the estimate?

Because it was the actual cash value payment: the replacement cost minus depreciation minus your deductible. On an older roof the depreciation can be a large share of the total. The rest is held back until the work is done.

How do I get the recoverable depreciation released?

Complete the work, then submit the final invoice and usually a certificate of completion to your insurer. They verify the work was done and release the holdback. Some insurers want photographs or a reinspection as well.

What if I never do the work?

Then you keep only the actual cash value payment and the depreciation is never released. That is the trade-off of a replacement cost policy: the full amount is available, but only if the roof is actually replaced.

What is the difference between recoverable and non-recoverable depreciation?

Recoverable depreciation can be claimed back after the work is completed. Non-recoverable depreciation cannot, and it is a feature of actual cash value policies rather than replacement cost ones. Check which type of policy you have, because it changes the real cost to you substantially.

Is there a deadline to claim it?

Usually yes. Policies commonly set a window to complete the work and submit for the holdback. Find that deadline in your policy or ask your adjuster in writing, and do not assume it is open ended.

Recoverable Depreciation on a Roof Claim | Texas Roof Claims

The short answer

On a replacement cost policy, your insurer first pays the actual cash value, which is the full cost minus depreciation for the age and wear of the roof. The depreciated amount is held back. Once the work is actually completed and you submit proof, the insurer releases that holdback. That released amount is the recoverable depreciation, and a lot of homeowners never claim it because they do not realize it exists.

What to do

Find out whether your policy is replacement cost or actual cash value, because it changes everything
Ask your adjuster in writing what is required to release the depreciation and by when
Keep the final invoice and completion certificate, since those are what trigger release
Do not let a contractor tell you the first check is the whole budget, because it usually is not
If the scope changed during the job, ask about a supplement before closing the claim

What we see in the Hill Country

On an older Hill Country roof the depreciation holdback is frequently several thousand dollars, and we have met homeowners who assumed the first check was the entire settlement and paid the difference out of pocket for no reason. Ask the question before the job starts, not after the claim closes.

Where this comes from

Source: Industry standard practice; verify specifics against your own policy. This page is general information from a roofing contractor, not legal or insurance advice. Your own policy governs your claim, and the Texas Department of Insurance help line is 800-252-3439.

Recoverable Depreciation on a Roof Claim

The short answer

What to do

What we see in the Hill Country

Where this comes from

More on roof claims

Straight answers