Do insurance companies pay the depreciation value on a roof claim?
Short answer. Yes, if your policy pays replacement cost and the depreciation is listed as recoverable. The insurer pays it after the repair or replacement is completed and documented, usually with a final invoice, within the policy's time limit. On actual cash value coverage or a roof payment schedule, the depreciation is not paid.
How to collect it
- Confirm the estimate lists the depreciation as recoverable.
- Complete the work within your policy's time limit. Many policies set a window, commonly 180 days, to finish the work or tell the insurer you intend to, and some allow longer. Ask in writing for an extension before a deadline passes if you need one.
- Send the final invoice, and sometimes completion photos or a certificate of completion, to the adjuster.
- Include any approved supplements so the final amount reflects all the work.
- Watch for the check, which may name both you and your mortgage company.
Mistakes that cost homeowners the depreciation
- Not doing the work. If the roof is never replaced, the held-back amount is typically forfeited.
- Missing the deadline. The clock usually runs from the date of loss or the first payment, depending on wording.
- Spending less. Insurers generally pay up to what was actually spent, so a cheaper job can reduce the release.
- Never asking. Depreciation is not released automatically; someone has to submit the paperwork.
More on the second check in recoverable depreciation on a roof, and on policy differences in ACV vs RCV. Robust Roofing also has a plain guide to getting the second insurance check.