Free tool
Recoverable Depreciation Calculator
From replacement cost to your first check to the holdback you're owed after repairs — the full ACV/RCV math on one line item.
Depreciation (45%)
$8,100
9 of 20 years used
Actual cash value (ACV)
$9,900
First check (ACV − deductible)
$7,400
Recoverable depreciation
$8,100
On a replacement-cost policy this is released after you complete the repair and submit the invoice — usually within the 18-month supplement window in Florida.
Where claims lose money here
Two places. First, the useful life the adjuster picked: a 20-year shingle life on an architectural roof rated for 30 quietly takes an extra 15–20% off. Second, the holdback itself — a surprising share of homeowners never submit the completion paperwork and leave the recoverable depreciation with the insurer. Our explainer on ACV vs. RCV walks through both.
Questions
- What is recoverable depreciation?
- On a replacement-cost policy the insurer first pays actual cash value (replacement cost minus depreciation), then releases the depreciation once you complete the repair and submit proof. That withheld amount is the recoverable depreciation.
- How is depreciation calculated on a roof?
- Most carriers use straight-line depreciation: age divided by expected useful life, applied to the replacement cost. A 9-year-old shingle roof with a 20-year life is depreciated 45%. Carriers often cap depreciation so an item is never valued at zero.
- Is there a deadline to collect recoverable depreciation?
- Policies typically require repairs within 180 days to two years of the ACV payment; in Florida the practical limit is the 18-month supplemental claim window under §627.70132. Check your policy and put the date on the file.
- Can depreciation be taken on labor?
- Practices vary by state and carrier. Some depreciate materials only; others depreciate the full line item including labor. It is worth checking the estimate's depreciation column line by line.
Think the depreciation is too high?
Send us the carrier's estimate. We'll check the useful-life assumptions and the missed scope, and return a full Xactimate® estimate within 12 hours, free.
All tools on this page are informational and not legal or insurance advice. More free tools