What Is Recoverable Depreciation?
Recoverable depreciation (also called RCV holdback or withheld depreciation) is the difference between a roof's replacement cost value (RCV) and its actual cash value (ACV). The carrier pays ACV upfront and typically releases the depreciation holdback once completion is documented and requested — subject to policy deadlines, and in Texas the insurer may require proof that the deductible was paid. Not all policies have recoverable depreciation — some are ACV-only policies.
Also Known As
These are the search terms and phrases that commonly refer to this concept. The governance system uses these as entry points for consumer intent matching.
How Recoverable Depreciation Relates to Other Topics
Recoverable depreciation is a key component of the insurance claim settlement — the carrier withholds it initially and releases it after the work is documented. Understanding depreciation is essential to knowing what you will actually receive from your claim.
Related To Recoverable Depreciation
A deductible is the homeowner's required out-of-pocket payment. Recoverable depreciation is withheld carrier funds that may be released after work completion. These are separate amounts.
Questions about Recoverable Depreciation?
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