Recoverable Depreciation: How to Get the Rest of Your Insurance Payout After Repairs Are Done
Most homeowners cash the first insurance check after a roof claim and assume that's the whole payout. It usually isn't. If your policy has replacement cost coverage, that first check is only part of what you're owed, and the rest sits with your insurer until you ask for it correctly. A lot of people never do, and the money just stays there. Here's what your friends at Valor Roofing would like you to know about this situation.
ACV and RCV aren't the same number
- Actual Cash Value (ACV) is what your roof is worth today, after depreciation for age and wear.
- Replacement Cost Value (RCV) is what it costs to actually replace the roof with new materials, no depreciation subtracted.
Most homeowner policies with replacement cost coverage pay in two pieces: the ACV amount up front, then the depreciation that was withheld, called recoverable depreciation, once the repair is finished and you've proven it.
Say your roof is valued at $18,000 to replace. The insurer might depreciate it by $4,000 because of its age, and cut you a check for $14,000 minus your deductible. That $4,000 doesn't disappear. It's recoverable, meaning you can still collect it, but only after the work is done and documented.
How the second payment actually gets released
| Stage | What happens |
|---|---|
| Claim approved | Insurer sends the ACV check: replacement cost minus depreciation minus your deductible |
| Roof gets replaced | Contractor completes the work to the approved scope |
| Completion paperwork submitted | Final invoice and certificate of completion go to the insurer |
| Depreciation released | Insurer sends the recoverable depreciation, provided the completed work matches the approved scope |
The part homeowners miss is the completion step. Insurers don't release recoverable depreciation automatically. Someone has to submit proof the job is finished, matched to what was approved, and ask for the second check.
What you need to submit to actually get paid
- A final invoice showing the completed work matches the insurer's approved scope.
- A certificate of completion, sometimes called a completion form, from your contractor.
- Photos of the finished roof, which some insurers request alongside the paperwork.
- Any receipts for supplemental work the adjuster agreed to after the initial estimate.
If your documentation from the original claim was thin, going back and pulling together photos and dates helps here too.
Why so many homeowners never collect it
A few patterns show up again and again. Some homeowners assume the first check was the whole settlement and never ask about the rest. Others use a contractor who doesn't handle insurance paperwork and no completion form ever gets filed. And some policies have a filing window for recoverable depreciation, often a year or so from the date of loss, so a homeowner who waits too long after finishing the repair can lose the right to collect it entirely.
If your claim was underpaid or denied along the way
Recoverable depreciation only matters if the original claim went through in the first place. If your insurer denied the claim, or approved a scope that seemed too small for the actual damage, that's a separate problem worth solving first. Our guide on what Knoxville homeowners can do about a denied claim covers how re-inspection and supplements work.
Frequently asked questions
What's the difference between ACV and RCV on a roof claim?
ACV is the depreciated value of your roof today. RCV is the full cost to replace it new. Policies with replacement cost coverage pay ACV first, then release the remaining recoverable depreciation once repairs are complete.
How do I actually collect recoverable depreciation after my roof is done?
Submit the final invoice, a completion certificate, and any requested photos to your insurer, showing the work matches the approved claim scope. The insurer typically issues the second check within a few weeks of receiving that paperwork.
Is there a deadline to claim recoverable depreciation?
Often, yes. Many policies set a window, commonly around a year from the date of loss, to submit for the remaining depreciation. Check your specific policy rather than assuming you have unlimited time.
Does every insurance policy include recoverable depreciation?
No. It applies to policies with replacement cost coverage. ACV-only policies pay the depreciated value with nothing held back to recover later, so there's no second check to chase.
What if my contractor doesn't handle the completion paperwork for me?
You can submit it yourself. Ask your contractor for a final invoice and completion certificate, then send those directly to your insurer's claims department along with any photos they request.
Don't leave the second check on the table
Valor Roofing files the completion paperwork for Knoxville homeowners on every insurance job, so the recoverable depreciation actually gets collected instead of sitting with the insurer. Most depreciation checks arrive within two to three weeks of us filing.
If you've already had storm repairs done and never went back for the rest of your payout, reach out or call (865) 468-8726 and we'll help you figure out where it stands.
Free, photo-documented inspection and a firm written price. No pressure, no in-home sales pitch.