What is recoverable depreciation on an insurance claim, and when is it paid?
Short answer. Recoverable depreciation on an insurance claim is the part of your replacement cost payment that the insurer holds back until the work is complete. It is paid after you submit proof of completion, typically a final invoice, and the timing depends on how fast the insurer reviews it and whether a mortgage company must endorse the check.
The typical sequence
- Inspection and estimate: within days to weeks of filing, depending on storm volume.
- First payment: after the estimate is finalized.
- Contract and scheduling: busy storm seasons in Georgia can push roof installs out for weeks.
- Installation: a typical shingle roof is often done in one or two days.
- Submission: the final invoice and photos go to the insurer.
- Release: review and payment, plus your lender's processing time if it is on the check.
Ways to keep it moving
- Tell the adjuster early that you intend to replace.
- Have supplements approved before submitting the final invoice.
- Send everything in one complete package.
- Call the lender's loss draft department in advance.
When it is not paid
- No repair or replacement
- Work finished after the policy deadline without an extension
- Property paid at actual cash value
If a carrier sits on a complete request without explanation, ask in writing for the reason and an expected date. Georgia also has rules on bad faith claim handling that are worth knowing if the delay drags on.
Related: the Georgia roof claim timeline, mortgage company on the check, and bad faith in Georgia.