What is the depreciation value on an insurance claim, and how do you get it?
Short answer. The depreciation value is the dollar amount the insurer subtracted from replacement cost for age and wear, shown next to each item on your estimate and as a total. On a replacement cost policy you get it by completing the repair or replacement and submitting proof; if you think the value is too high, you can challenge the age, life, or condition used.
Finding it on your estimate
- A depreciation column beside each line item
- A total on the summary page, often split into recoverable and non-recoverable
- Sometimes a separate letter listing the holdback and the deadline
Disputing a depreciation value
- Ask for the inputs: the age, expected life, and condition the adjuster used.
- Correct the age: send permits, invoices, or purchase records.
- Question the life: make sure the material is identified correctly, such as architectural rather than three-tab shingles.
- Address condition: photos showing good condition before the storm can help.
- Request a review: in writing, to the adjuster or a supervisor.
If the disagreement is about the amount of loss and your policy has an appraisal clause, appraisal may be an option.
Getting the value paid
Finish the work, send the final invoice, and request the release. Depreciation on items you never repair or replace is generally not paid, and on an actual cash value roof the roof portion is not paid at all. Keep a copy of everything you send and the date you sent it.
Related: the appraisal clause, roof age and insurance, and recoverable depreciation on a roof.