What does less depreciation mean on an insurance claim estimate?
Short answer. Less depreciation is the line on your estimate summary where the insurer subtracts the value your damaged property had already lost to age and wear from its replacement cost. Whether you ever get that amount back depends on whether the estimate treats it as recoverable or non-recoverable.
Reading the summary block
Most estimates written in Xactimate end with a summary that reads roughly like this, top to bottom:
- Replacement Cost Value: what the full repair costs today
- Less Depreciation: the age deduction, sometimes split into recoverable and non-recoverable
- Actual Cash Value: replacement cost minus depreciation
- Less Deductible
- Net Claim: your first check
- Total Recoverable Depreciation and Net Claim if Depreciation is Recovered: what you can receive once the work is done
Four checks to run
- Is the roof age right? Find the age used on the roofing lines and compare it with your records.
- Is the life expectancy reasonable for your material?
- Are tear off and disposal depreciated? Usually they are not.
- Does the math add up? Replacement cost minus depreciation minus deductible should equal the net claim.
Recoverable or not
Look for the recoverable and non-recoverable totals on the summary, or a legend on the line items that marks which is which. Recoverable depreciation is held back and paid after completion. Non-recoverable depreciation is gone unless you prove an error in the age, life or classification. See how to read an Xactimate roof estimate and ACV vs RCV.