Recoverable Depreciation Explained

Recoverable depreciation is depreciation that was initially deducted from your claim settlement but is recoverable when you complete the repairs and provide proof of completion. This is a Industry Practice in many property insurance claims.

Under this structure, the insurer pays the initial estimate minus depreciation. Once you complete repairs and submit proof (contractor invoice, receipts, photos), you can claim the depreciation back.

• Actual repairs must match the estimate: You must complete repairs in accordance with the estimate. Different repairs or additional work may not qualify for depreciation recovery.
• Proof of completion is required: You must provide invoices, receipts, and photos proving the repairs were completed.
• Timeline may apply: Some policies require claims for depreciation recovery to be submitted within a specific timeframe (typically 12–24 months).
• Not all items are depreciation-recoverable: Check your policy to see which items allow depreciation recovery.

• Insurers don't mention it: Many initial claims letters don't explain that you can recover depreciation, leaving homeowners unaware.
• Strict timeline enforcement: If you don't submit depreciation recovery request within the policy period, you may lose the right to recover it.
• Disputes over repair match: Insurers sometimes claim repairs don't match the original estimate to deny depreciation recovery.

• Review your initial claim settlement. Does it show depreciation deductions?
• Search your policy for "recoverable depreciation" or "depreciation recovery" language.
• Identify the deadline for submitting a depreciation recovery claim.
• Gather all invoices and receipts for completed repairs.
• Determine which items in your estimate have recoverable depreciation.