Question about filing an insurance claim.

[HTC User]

Recently we filed a claim for our damaged roof due to a hail storm. A couple weeks later, we received a check for $6,500 to repair our roof. The paperwork included the prices labor and parts, which turned out to be $12,000.

The full cost of repair or replacement is......$12,000
The amount of recoverable depreciation is..$ 3,000
The actual cash value is.............................$ 9,000
Less deductible.........................................$-2,500
Amount Paid this date................................$ 6,500

So the total cost to repair our roof is $12,000 and we only received a check for $6,500. What is "the amount of recoverable depreciatoin"? So the insurance company pays $6,500 and we pay $5,500 for the other half?

 

[everman]

Is this a business/rental or residence?

 

[HTC User]

Originally posted by: everman
Is this a business/rental or residence?

Residence.

 

[BoomerD]

Sounds like it...That sux. I didn't think they did it that way. The deductible is understandable, but didn't realize they'd depreciate a roof. I know we have full replacement coverage in our policy. Covers personal property as well as dwelling repair and replacement.

 

[jadinolf]

In the future you might investigate lowering the deductible but if your luck runs like mine nothing else will ever happen.

 

[HTC User]

Houses appreciate, not depreciate. The roof is part of the house, why would it depreciate?

 

[HTC User]

Originally posted by: jadinolf
In the future you might investigate lowering the deductible but if your luck runs like mine nothing else will ever happen.

We weren't planning to replace our roof until we saw all our neighbors replacing theirs.

 

[everman]

I believe you should be able to recover that portion, but I'm not an insurance expert. I did find an article though: Text

 

[HTC User]

Originally posted by: everman
I believe you should be able to recover that portion, but I'm not an insurance expert. I did find an article though: Text

Most replacement-cost homeowners policies today include a "recoverable depreciation" clause, allowing the insurer to hold back a portion of the proceeds until you prove your repairs (or replacement) are complete.

I'll have to find out if we have a replacement cost or a actual cash value policy.

 

[BoomerD]

Originally posted by: everman
I believe you should be able to recover that portion, but I'm not an insurance expert. I did find an article though: Text

Great link...Thanks...this is sort of what I went thru in the garage burglary. They cut me a check for most stuff, then as I replaced tools, I sent receipts, and they would send more $$$ to cover things. Didn't realize they did that for things like home repair, but in reading your link, it makes sense.

 

[HTC User]

AH, I found this in the paperwork that I overlooked.

Your policy contains replacement cost coverage. You may make claim within 180 days after your loss for an additional payment under this coverage.

I :heart: you everman.

 

[mugs]

Originally posted by: HTC User
Houses appreciate, not depreciate. The roof is part of the house, why would it depreciate?

Because it needs to be replaced periodically.

 

[everman]

:beer:

 

[HTC User]

Is there any way to lower the deductible? Possibly barter with the roofing company?

 

[amdskip]

A roof depreciates. It will have a 15-30 year life span and it looses value every year.

 

[Schadenfreude]

Originally posted by: HTC User
Is there any way to lower the deductible? Possibly barter with the roofing company?

Nope. Even if you were to lower the labor costs (somehow, I don't know) the deductible is counted as the inital portion of the payment.