Recoverable Depreciation: How to Actually Collect the Second Check
On a replacement cost policy, the money withheld as depreciation is usually still yours. It is released after the work is completed and documented. A meaningful number of homeowners never ask for it.
The Money You Were Not Told to Chase
Replacement cost policies pay in two stages by design. The carrier issues actual cash value up front, holds back the depreciation, and releases it once you prove the work was actually done. The logic is to prevent people from pocketing a full replacement payment on a roof they never replace.
The mechanism is reasonable. The communication around it is often not, and the result is homeowners who complete the work, never submit the completion paperwork, and quietly forfeit a five-figure sum.
What Releases the Holdback
Carriers vary, but the package is broadly the same everywhere.
- Final invoice. Itemised, on contractor letterhead, showing the work performed and the total actually charged.
- Certificate of completion. A signed statement that the work is finished, sometimes on the carrier's own form.
- Proof of payment or a signed contract. Some carriers want evidence you have paid or are obligated to pay the full amount.
- Photographs. Completed work, usually including any line items that were disputed earlier.
- Permit documentation. Where the jurisdiction required one, the closed permit is useful and occasionally requested.
The number that has to reconcile
Recoverable depreciation is generally released up to the amount actually incurred. If your final invoice comes in below the approved replacement cost, the release is usually trimmed to match. If the invoice comes in above it because the scope grew, that is not a depreciation question — that is a supplement, and it gets handled separately.
The deadline nobody mentions
Most policies impose a time limit for completing the work and claiming the holdback. Commonly it is somewhere between one hundred eighty days and two years from the date of loss, and it lives in the loss settlement condition of your policy rather than in any letter you received. Find it early. If materials, permits, or scheduling are going to push you past it, most carriers will grant an extension if you ask before it expires rather than after.
Where These Get Stuck
The most common failure is an invoice that does not line up with the approved estimate. If the carrier approved ridge vent and your invoice says ventilation, someone has to reconcile the two, and that someone is usually you on a phone call.
We write final invoices to mirror the carrier's own line items and sequence. It is a small thing that removes a whole category of delay, because the reviewer can put the two documents side by side and tick them off.
When Depreciation Is Not Recoverable
Not every holdback comes back. If your policy settles the roof on an actual cash value basis, or carries a roof payment schedule that reduces the covered percentage with age, the depreciation is non-recoverable by design. Completing the work does not release it because there is nothing being held in trust.
The distinction is visible in your declarations page and in the estimate summary, which usually labels depreciation as recoverable or non-recoverable explicitly. Reading that line before you plan the project is what tells you your true out-of-pocket number.
Across central and northeast Ohio we manage this step as part of the job rather than leaving it with the homeowner. If you had work done and never received a second check, call (877) 521-7171 — it is worth a look.
Not Sure Where Your Claim Stands?
We inspect the roof, document what is actually there, and tell you honestly whether you have a claim worth filing.
Common Questions
Your policy sets the limit, and it commonly runs from around 180 days to two years from the date of loss. It is found in the loss settlement condition. If you need longer, ask for a written extension before the deadline passes.
The release is generally limited to what was actually incurred, so a lower invoice usually means a smaller second check. The gap is not typically paid out.
That is a supplement rather than a depreciation question. It requires documentation of the additional scope and a separate approval from the carrier.
Carriers handle owner-performed work differently and often reimburse materials but not the full labour rate. Ask your carrier before starting, in writing.
On a replacement cost policy, generally yes. The holdback exists specifically to be released against proof of completed work.
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