How does homeowners insurance handle recoverable depreciation on do-it-yourself repairs?
Short answer. Homeowners insurers generally release recoverable depreciation on do-it-yourself repairs only up to the costs you can prove you actually incurred, and some may ask for proof the work meets code. Tell your adjuster before you start, get the policy's position in writing, and keep every receipt and photo.
Mixing DIY and hired work
Homeowners often handle interior painting, drywall patching, or fence repairs themselves while hiring out the roof. Each part of the claim is treated separately, so you can collect the full holdback on the contractor-built roof and your incurred costs on the parts you did.
Talk to the adjuster first
- Ask whether your own labor will count, or only materials and paid help.
- Ask what proof they need at the end.
- Ask for the deadline to finish and submit.
What usually does not get paid
- Overhead and profit, which applies when a general contractor is reasonably needed and used
- Line items you skipped
- Upgrades beyond like kind and quality
Mortgage company considerations
If your lender is on the check, it may require an inspection or lien waivers before releasing funds, and some lenders are less comfortable with owner-performed work on large claims. Call the loss draft department early.
Keep it honest
Report only real costs. Inflating receipts or claiming work that was not done is insurance fraud, and it can void the whole claim.
Related: overhead and profit, mortgage company on the check, and recoverable depreciation on a roof.