Insurance & Claims
Recoverable Depreciation: How to Get the Rest of Your RCV Roof Payout
The short answer
On a replacement-cost (RCV) policy, the insurer pays the roof's depreciated value first and holds back 'recoverable depreciation' until the work is completed and documented. You get that second check by finishing the approved work and submitting the final invoice and proof of completion. Pocket the first check and skip the work, and you forfeit it.
Part of our guide to Will Insurance Pay for My Roof? A WA & OR Homeowner's Guide.
If you’ve filed a roof claim on a replacement-cost policy, you may have opened the first check and thought the insurer shorted you. Usually they didn’t — they’re holding the rest until the work is done. That withheld amount is called recoverable depreciation, and knowing how it works is the difference between collecting your full payout and leaving thousands behind.
The two-check system, explained
A replacement-cost (RCV) policy pays a roof claim in two parts:
- The first check — actual cash value (ACV). Replacement cost minus depreciation for the roof’s age and wear. You get this up front.
- The second check — recoverable depreciation. The withheld remainder, released after the work is completed and documented.
The insurer holds the depreciation back for a simple reason: it wants to pay full replacement cost only if you actually replace the roof. It’s not a denial or a lowball — it’s the structure of an RCV policy. (If you’re not sure which policy you have, start with ACV vs. RCV — it decides whether that second check even exists.)
How the money flows
| Step | What happens |
|---|---|
| Claim approved | Carrier issues the ACV check (replacement cost − depreciation) |
| Work completed | Contractor finishes the approved scope |
| Documentation submitted | Final invoice + proof of completion sent to the carrier |
| Depreciation released | Carrier issues the recoverable-depreciation check |
How to actually collect it
- Complete the approved work with a licensed contractor, matching the carrier’s approved scope. If the real scope is larger than the estimate, that’s a supplement conversation your contractor handles — it doesn’t change how depreciation is recovered.
- Get the final documentation: an itemized final invoice and proof of completion. Your contractor prepares this.
- Submit it to the carrier and request release of the recoverable depreciation. Note any deadline in your policy — carriers often set a window (sometimes 180 days to a year) to complete work and claim it.
- Deductible math: your out-of-pocket is your deductible. Between the two checks, the insurer pays the approved replacement cost minus that deductible.
The mistakes that cost homeowners money
- Pocketing the first check and not doing the work. You forfeit the recoverable depreciation and still have the damaged roof. This is the single most common way people lose money on a legitimate claim.
- Missing the completion deadline. Recoverable depreciation is time-limited in most policies. Don’t let the file go cold.
- Letting scope get lost. If the approved estimate missed code items or hidden damage, those need to be supplemented before the job is closed. An experienced contractor catches this at the adjuster meeting.
How we handle it
For our insurance clients, we build from the carrier’s approved scope, complete the work to spec, and submit the completion documentation that releases your depreciation — so you collect your full payout and pay only your deductible. We don’t charge extra for insurance work.
This is general information, not a guarantee about any specific claim — policies and carrier practices vary. Filing or mid-claim? Book a free inspection and we’ll document the damage and walk your policy’s numbers with you.