How does recoverable depreciation work across a home insurance claim?
Short answer. On a home insurance claim, recoverable depreciation is tracked separately for each part of the loss: the dwelling, other structures like fences, and your personal property. Each part's holdback is released when that part is repaired or replaced, so you can collect it in stages rather than all at once.
The coverages on one claim
- Coverage A, dwelling: roof, siding, gutters, interior walls and ceilings.
- Coverage B, other structures: detached garages, sheds, and fences.
- Coverage C, personal property: furniture, electronics, and clothing.
The estimate often groups line items by coverage, with recoverable depreciation listed for each. Contents may be on actual cash value only, so check whether Coverage C depreciation is recoverable at all.
Releasing it in stages
If the roof is finished in May and the interior painting in July, you can request the roof holdback in May. Send each invoice when that part is complete; you do not have to wait for the whole house.
A common example after a hailstorm
- Roof and gutters replaced by a roofer: released with the roofer's invoice.
- Fence replaced: released with the fence invoice.
- A rug ruined by a leak and replaced: released with the store receipt, if contents are on replacement cost.
Watch the deadlines
Each part generally has to be completed within the policy's time frame. If one trade is delayed, tell the insurer in writing and ask for an extension before the deadline passes.
Related: interior water damage from a roof leak, recoverable depreciation on a roof, and the Georgia roof claim timeline.