Recoverable depreciation

What is recoverable depreciation?

The portion of the claim the carrier holds back at first and releases once the roof is replaced and documented.

Definition

When a carrier pays a claim on a replacement-cost policy, they don’t hand over the full amount on day one. They pay the actual cash value first and hold back the depreciation — the wear-and-tear they subtracted for the roof’s age.

That held-back money is recoverable. Once the roof is actually installed and you submit a certificate of completion and a final invoice, the carrier releases the depreciation in a second check.

Recoverable depreciation is real money that belongs to the job, but it only comes back if someone tracks it and asks for it. A lot of roofers leave it sitting in the carrier’s account simply because nobody followed up after the build.

Track every insurance check
Related terms
ACV vs. RCVACV is the depreciated cash value of your roof today; RCV is what it costs to replace it new — and the gap between them is the depreciation you have to earn back.Non-recoverable depreciationDepreciation the carrier subtracts and never pays back — the part of a claim a policy keeps even after the roof is replaced.Actual cash value (ACV)What your roof is worth today after the carrier subtracts for age and wear — the smaller, first check on most claims.Depreciation releaseThe carrier’s second payment, sent after the roof is completed and documented, that recovers the depreciation held back at first.Certificate of completionA signed document confirming the roof work is finished — usually required before the carrier releases the recoverable depreciation.Mortgage check endorsementWhen a claim check is made out to both the homeowner and their mortgage company, requiring the lender’s sign-off before funds release.
Related guides
Industry GuideThe Complete 13-Step Storm Damage Roofing Claims Process [2026 Guide]Insurance ClaimsWhy Roofing Insurance Claims Get Denied (And How to Fix It)

Put the playbook to work

HailMate reads the scope, flags the line items carriers leave off, and tracks every claim to the final depreciation check.

14-day free trial · no credit card · $60/user