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Roofing Depreciation
Your insurance company may hold back depreciation. Depreciation is the amount of your settlement that is not paid until and unless you need it to complete the repairs to your home if you have a replacement cost value policy.
Most policies cover replacement cost. If you are unsure, ask your roofing contractor or insurance adjuster.
The depreciation is normally cut as a second check after you or your contractor submit a signed estimate or a final invoice.
If you do not use all of your depreciation to get your home fixed, your insurance company will subtract your deductible from the final lower-priced invoice rather than the total claim originally allowed. In other words, the insurance company will keep any depreciation not spent on repairs.
After the final invoice is submitted, your insurance company, and sometimes your mortgage company, may want to do a final inspection to be sure that all of the work billed has been completed in a workmanship like manner with quality materials before releasing the second depreciation check.
Roof Depreciation Tips
- Depreciation is the amount of money withheld from you until your work is completed. By withholding depreciation, your insurance company ensures that they only pay the balance after you pay your deductible.
- Your insurance company will match, not exceed, your roofing contractor’s “fair market value” bid, less your deductible.
- If you do not spend all of the money allowed, your insurance company keeps the difference and pays the balance.
If your home is within 50 miles of the Dallas / Fort Worth Metroplex, Call Toll-Free (800) 417-7487 or fill out the form below for more roofing depreciation help…
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