How is depreciation recovered from insurance?
Short answer. Depreciation is recovered by completing the repair or replacement and sending the insurer proof of the finished work and its cost, usually a final invoice. The insurer reviews it against the estimate, may ask for photos or a reinspection, and then issues a check for the held-back depreciation, often with the mortgage company named.
What happens on the insurer's side
- The request comes in. You or your contractor send the final invoice, often with completion photos, referencing the claim number.
- Desk review. A claims handler checks that the work matches the estimate's scope and that the invoice total reaches the replacement cost figure, or notes a lower amount actually spent.
- Supplements reconciled. Items added during the job are approved or questioned, and their depreciation is released if the work is done.
- Possible verification. On larger claims some carriers reinspect or ask for more photos.
- Payment. The recoverable depreciation check is issued, usually payable to you and any mortgage company on the policy.
What slows it down
- An invoice that does not show the claim number, property address, or itemized scope
- Upgrades mixed in without being separated from the insured work
- Missing proof for added items like decking replacement
- A missed time limit in the policy
How long it takes
Timing varies by carrier and by how complete the package is. If the release stalls, ask for the reason in writing. If a carrier stops responding, the Georgia Office of Insurance and Safety Fire Commissioner takes consumer complaints.
Related: recoverable depreciation on a roof, mortgage company on the check, and filing a complaint in Georgia.