Recoverable Depreciation in a Homeowner's Claim?

[GRG a/k/a goldenrulegirl]

Tell me about recoverable depreciation in a Homeowner's claim for structural damage.

What is it?

How do I get it paid out?

(Talk slowly -- I want to be sure I understand it fully -- it has become a PITA issue.)

[andi9899]

I'm not in claims, but I think it's the amount they release after the work is done. Example- I have a roof that needs to be replaced as a result of storm damage. My roof costs $10K to replace and I have a $1k deductible. The insurance company will then according to my policy be responsible for $9K and I am responsible for $1K. The insurance company sends a check for $5K which I give to the contractor along with a signed contract to pay them the other money upon completion of the work. The contractor does the roof replacement and sends the final bill to the insurance company for payment. The insurance company then sends a check for $4K to me which I deposit and then write the contractor a check for $5K to include my deductible.

There's a little more to it than that, but this is the gist if it is what I'm thinking it is.

[hoops902]

Deleted:  My explanation was terrible and confusing, and didn't particularly answer the question, probably best to just pretend it never happened.

[The Captain]

andi9899 and hoops902 - I've actually seen both your scenarios covered.

www.fmagencygroup.com/recoverable-depreciation/

www.travelers.com/claims/understanding-depreciation.aspx

In the case of a home damage policy I'm more inclined to believe it's the holdback amount until the owner provides proof that all repairs were made.  This is prevent possible future claims on the same incident or damage.

[GRG a/k/a goldenrulegirl]

Oooooooohhhhhhhh!!!! So recoverable depreciation could absolutely work in my favor. AWESOME!!!!

(I'm going to take the high road and say that the contractor, in his own awkward, obtuse, way, is trying to help me, not screw me. )