Recoverable Depreciation
Insurance Glossary
The portion of a claim payment an insurer holds back for depreciation and releases once the repair or replacement is finished and documented. It applies on replacement cost policies, where the first payment covers the depreciated value and the balance follows after the work is done. Policies set a deadline for completing repairs and submitting receipts, and depreciation is not recoverable at all under an actual cash value policy.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.