Recoverable depreciation on a roof claim is the part of your payment the insurer holds back until the new roof is actually installed. On a replacement cost policy, you usually get the first check for the depreciated value, then the held-back amount after you send proof the work is done. Knowing that sequence helps you plan the project and avoid leaving money unclaimed.
Working through a roof claim right now? Call Cannon Roofing at (940) 627-1045, open 24/7, or reach us on our contact page and we will explain where your paperwork stands.
The two-check system in plain English
Most Texas homeowners policies pay roof claims on either actual cash value (ACV) or replacement cost value (RCV). Our article on ACV versus RCV roof coverage compares them in detail. Recoverable depreciation only exists on RCV-type coverage.
Check one: the ACV payment
The adjuster writes an estimate for replacing the damaged roof, then subtracts depreciation for the age and condition of the old roof, and subtracts your deductible. What is left is the first payment. It is meant to get the work started.
The holdback
The depreciation amount is not gone. It is held back as recoverable depreciation, sometimes called the holdback. The insurer releases it once you show the roof has been replaced as described in the estimate.
Check two: the depreciation release
After the work is complete and documented, the insurer issues the held-back amount. Together, both checks plus your deductible cover the replacement cost of the scope the insurer approved.
Recoverable versus non-recoverable
If your coverage is ACV only, or your roof coverage has been endorsed to pay actual cash value, depreciation may be non-recoverable. In that case there is no second check. Your declarations page and any roof endorsements tell you which applies.
Paperwork that usually releases the recoverable depreciation on your roof
Insurers vary, but most ask for some combination of the following.
- A final invoice from your roofer showing the work completed, matching the scope in the insurer's estimate as closely as possible.
- A certificate of completion or similar signed document, if your insurer uses one.
- Photos of the finished roof, and sometimes of work in progress, such as decking replaced.
- Supplement documentation if extra items were found during tear-off and approved by the insurer.
- Your claim number on everything.
Deadlines matter
Many policies require the work to be completed, and the depreciation claimed, within a set period after the loss or after the first payment. The time frame is written in your policy's loss settlement section. If the project will take longer, ask your insurer in writing about an extension before the deadline, not after.
How your roofer's invoice fits in
The invoice is the key document, so it needs to be clear. A good final invoice lists the roofing items installed in terms the adjuster can match to their estimate: tear-off, underlayment, shingles, starter, ridge, drip edge, vents, flashing and any decking replaced. Vague one-line invoices slow things down.
Cannon Roofing's insurance claims help is built around getting that documentation right. We photograph the job, itemize the invoice to match the approved scope, and send the completion paperwork your insurer asks for. We have served Decatur, Rhome, Springtown and the rest of North Texas since 1994, and every crew member carries the Technician Seal of Safety: background checked, drug tested, factory trained and insured.
Mortgage company checks
If you have a mortgage, the insurer's checks may be made out to both you and your lender. Your mortgage company may hold funds and release them in stages as work progresses, which adds a step. See what to do when the mortgage company is on your check.
When the scope changes mid-job
Tear-off sometimes reveals rotted decking, a second layer of old shingles or missing flashing that nobody could see during the inspection. When that happens, the crew stops, photographs the condition and documents it before covering it up. That record goes to the insurer as a supplement request. If it is approved, the added items become part of the scope, and the final invoice should include them so the depreciation tied to them can be released too. Surprises handled this way do not derail the claim; surprises covered over without photos often do.
Common mistakes that cost homeowners the holdback
- Not knowing the second check exists and never asking for it.
- Missing the deadline to complete work and submit proof.
- Installing a scope very different from the estimate without telling the insurer, making the invoice hard to match.
- Losing the paperwork. Keep a single folder with the estimate, invoices, photos and correspondence.
The deductible is yours
Texas law makes it illegal for a contractor to waive, absorb or rebate your insurance deductible. Any roofer offering to "cover your deductible" is a red flag.
Frequently asked questions
How long does it take to receive recoverable depreciation?
It depends on the insurer and how complete your documents are. Clean, itemized paperwork that matches the estimate generally speeds up the release.
Can I keep the depreciation if I do not replace the roof?
Generally no. Recoverable depreciation is paid when the work is done. If you do not replace the roof, you typically keep only the actual cash value payment.
Does the roofer collect the depreciation check?
The check is issued according to your policy and claim, often to you and possibly your lender. You then pay your contractor under your contract.
Want help getting your roof claim paperwork right from the start? Call Cannon Roofing at (940) 627-1045, day or night, for a free inspection and estimate, or send your details on our contact page. We will explain the process and the documents you will need.