What is Recoverable Depreciation?

If your insurance policy includes replacement cost coverage, then you may be eligible for more reimbursement than what your claim initially reports. How is this possible? Well, we all know things lose value over time, and so your initial claim report may only show the current value of your roof minus the deductible. That’s why you are right in thinking there is not enough in the claim to cover the new roof you need.

But, if you have replacement cost coverage you may be able to get reimbursed the difference between what your roof is worth now and its original cost after the roof is replaced. Hopefully that puts a smile back on your face. Let us help you get back your recoverable depreciation on your next project!

Tips for claiming recoverable depreciation:

  1. Check your policy to make sure you have replacement cost coverage
  2. Save records: Make sure you keep a good paper trail of everything that went in to replacing your roof.
  3. Be quick: There can be a time limit on your policy for collecting recoverable depreciation.  Make sure you work with your contractor to make sure the job is done on time.

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