Home & Property
Recoverable Depreciation
The withheld depreciation amount that a policyholder can claim back after completing repairs under a replacement-cost policy.
Last reviewed: May 2026 · Editorial methodology
Definition
When a replacement-cost policy settles a claim, insurers typically issue an initial payment equal to actual cash value (ACV) and withhold the depreciation amount until repairs are actually completed. Once the insured completes the work and provides receipts or a contractor invoice, the insurer releases the withheld depreciation — called recoverable depreciation — as a supplemental payment. For example, if a storm destroys a $30,000 roof with $12,000 of accumulated depreciation, the insurer first pays $18,000 (ACV), then releases $12,000 more after the new roof is installed. Most policies give policyholders 180–365 days after the loss to complete repairs and submit for recoverable depreciation; missing this deadline forfeits the supplement. Contractors and public adjusters often coach policyholders through the recoverable-depreciation claim process because many homeowners don't realize the supplemental check is available. Non-recoverable depreciation policies pay ACV only and never release the withheld amount regardless of repairs.
Where this term matters
💡 Tip
Related terms
Related guides
Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
Get Insurance Rate Alerts
We monitor rate filings in all 50 states. Get notified when rates change in your area — and discover new ways to save.
- ✓State-specific rate change alerts
- ✓Seasonal enrollment deadline reminders
- ✓Expert tips to lower your premiums
- ✓New coverage options in your state
Free forever. Unsubscribe with one click. No spam, ever.
Important Disclaimer
This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.