Recoverable Depreciation

  Recoverable Depreciation is the gap between replacement cost and Actual Cash Value (ACV). You can recover this gap by providing proof that shows the repair or replacement is complete or contracted.  

 First, The Insurance Companies pay you the actual cash value (ACV) for your damaged property, minus your deductible. You can use this to either begin the repair work or to replace your property altogether. Before receiving additional payments, you may need to show a signed contract that repairs have been completed or the property has been replaced. 

 Your policy may provide replacement cost for your home and personal property. However, we don’t pay your replacement cost until you’ve repaired or replaced the damage.

As a result, you may receive more than one payment for your recoverable depreciation – this will be whatever the difference is between the ACV and the replacement cost.

Invoices or receipts help you receive your replacement cost payment.

 ACV is the cost to repair or replace damaged property, minus depreciation. Depreciation is the loss of value over time and can be impacted by age, disuse and condition. For example, if someone steals your TV and you have replacement cost coverage, your claim information may look something like this: 

• Original cost - $900
• Cost to replace your TV today - $900
• ACV after depreciation - $750

This means our first payment to you would be: $750 - your $500 deductible = $250 After you buy your new $900 TV and show the insurance company your receipt, we’d make a second payment to you of $150. 

  Homeowners are paid recoverable depreciation after they've repaired or replaced the item, so long as they follow the correct set of steps.   

  You can verify if your depreciation is recoverable on your insurance adjustment, or on your insurance declaration page or policy.   Recoverable depreciation is the difference between a damaged or stolen item's actual cash value and its replacement cost.