How recoverable depreciation works on a roof claim.
On many insurance roof replacements, the last check is the one contractors never collect. Here's how recoverable depreciation works and why it gets stuck.
What recoverable depreciation is
On most replacement cost policies, the carrier pays the actual cash value of the claim first. Actual cash value is the replacement cost minus depreciation, which reflects how much the old roof had worn down. The carrier holds back that depreciation until the roof is actually replaced.
The amount held back is called recoverable depreciation. Once the work is finished and documented, it can be recovered, and on many jobs it is a meaningful part of what pays the contractor.
What the carrier usually needs to release it
- A certificate of completion (COC) signed by the homeowner
- A final invoice for the completed work
- Completion photos, on many claims
Requirements vary by carrier and policy, so it's worth checking the claim paperwork on every job.
Why it gets stuck
The carrier doesn't release depreciation on its own. Someone has to request it, and many policies set a time limit for doing so. Once the crew has moved on to the next job, the COC can sit unsigned in a homeowner's inbox, the request never goes out, and the last check quietly becomes money nobody collects.
Questions roofers ask
What is recoverable depreciation on a roof claim?
It's the part of the claim the insurance company holds back until the roof is replaced. The carrier pays the actual cash value first, then releases the depreciation once it receives proof the work is complete, usually a signed certificate of completion and a final invoice.
What is a COC in roofing?
A COC is a certificate of completion. The homeowner signs it to confirm the work is finished, and the carrier usually needs it before releasing recoverable depreciation.
Is there a deadline to claim recoverable depreciation?
Many policies set a time limit for completing the work and requesting the depreciation. The exact window depends on the policy, so check it at the start of every insurance job.
How long does it take to get depreciation released?
It depends on the carrier and how complete the paperwork is. Complete documentation sent promptly, followed by steady follow up, is the fastest way to get the check issued.
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