What does less recoverable depreciation mean on a roof claim?
A roof example
Your roofer's contract says $15,500, matching the insurer's replacement cost. The estimate summary shows:
- Replacement cost value: $15,500
- Less recoverable depreciation: $5,200
- Actual cash value: $10,300
- Less deductible: $1,500
- Net claim: $8,800
That $8,800 starts the job. After installation, the $5,200 is released, and you pay your $1,500 deductible. The roofer receives $15,500 in total, and nobody is out of pocket beyond the deductible.
Roof lines that carry it
The shingle, underlayment, ridge, and flashing lines are depreciated for age. Some labor lines may carry little or none. Look at the depreciation column next to each line to see where the total comes from.
When it is not recoverable on a roof
If the line reads non-recoverable depreciation instead, your roof is likely under an actual cash value or payment schedule endorsement, and that amount will not come back. Compare the estimate with the endorsements listed on your declarations page.
Keeping it recoverable
- Note the deadline to finish the work and claim it.
- Do not let the scope shrink: items that are never installed lose their depreciation too.
- Get supplements approved before the final invoice goes in.
Related: recoverable depreciation on a roof, roof payment schedules, and the Georgia roof claim timeline.