Property insurance as it relates to damage restoration comes with its own set of regulations within theproperty and casualty insurance realm of the home insurance industry. Restoration water damage being among the most common type of claims for property insurance coverage should be navigated so that the insured retains the maximum benefit from paying insurance premiums. While no one wants to go through a property and casualty insurance claim, should it happen to you, you should make sure you capture all phases of claim reimbursement possible. As an insured consumer with home insurance and having replacement cost coverage on your policy, this means the insurance company will pay for all the repairs except the deductible. However, house insurance recoverable depreciation comes with a catch. In order to collect the full amount, you have to actually replace all the damage. Sometimes, the claims check will be issued per the estimate minus your deductible while withholding “recoverable depreciation” from the first claims check. The balance that gets paid to you first is what is called the “Actual Cash Value” of the repair. “Recoverable Depreciation” is sometimes used when you have a replacement cost homeowner’s insurance policy. Insurance companies are essentially paying you the replacement cost minus depreciation even though you have a Replacement Cost policy. In this manner, the insurance company is asking you to prove you are going to replace the item included in the estimate. As for how any type of depreciation is calculated, the most common method of calculating the “Recoverable Depreciation” is based on the life expectancy of the item, with adjustments made for the item’s age and condition. This is usually calculated in some form of percentage of cost, and then broken down over a set amount of years determined by the insurance company.
Work must be complete and or photos submitted, in order to receive the “Recoverable Depreciation”. You should also notify your claims representative, in writing of your intent to make a claim under the replacement cost provision. You will need to check with your carrier for their “Recoverable Depreciation”claim period expiration. Then submit itemized receipts and invoices pertaining to the completed repairs. Once reviewed, the carrier will then pay the amount withheld or the difference between the initial payment “Actual cash Value” and completed work. Once you submit proof of the replacement or repair, the insurance company will issue the remaining amount on the estimate labeled “Recoverable Depreciation”.
In as much as we write the foregoing information as a consumer/insurance carrier advocate, we do this to help our customers. As well, we are always here to help any customer with any related subject pertaining to any fire and water restoration claim. At APRIS we are a full service fire and water restoration contractor who specializes in assisting in advanced leak detection in Corona. We are inspired to challenge the status quo in our industry. Because we have experienced major catastrophes for victims of hurricanes Irene and Sandy first hand, we therefore have created untouchable customer service. We handle floods, burst pipe repair, sewer repairs, and slab leaks, plumbing leak detection with leading plumbing leak detection equipment all in the Inland Empire, Riverside and Orange County areas.