Your Insurance Company Is Holding $3,000+ of Your Roof Money — Here’s How to Get It

You filed a roof damage claim. The adjuster came out. The insurance company approved the claim and sent you a check.

But the check seems low. Way lower than the total replacement cost on the estimate.

You’re not being shortchanged — at least not intentionally. Your insurance company is holding back money that you’re entitled to. It’s called recoverable depreciation, and it’s one of the least understood parts of the roof insurance process.

Thousands of DFW homeowners leave this money on the table every year simply because they don’t know it exists or how to collect it.

What Is Recoverable Depreciation?

When you file a roof claim under a Replacement Cost Value (RCV) policy, the insurance company calculates two numbers:

1. Replacement Cost — what it costs to replace your roof today with comparable new materials
2. Depreciation — the value your roof has lost due to age and wear

Your first payment is the replacement cost minus depreciation minus your deductible. This initial payment equals the roof’s Actual Cash Value (ACV).

The depreciation amount is held back by the insurer. It’s not gone — it’s reserved. And it gets released to you after you prove the repairs have been completed.

This held-back amount is called recoverable depreciation.

A Real-World Example

Here’s what this looks like on a typical McKinney home:

Line Item	Amount
Replacement cost (new roof)	$16,000
Depreciation (12-year-old roof)	-$5,500
Deductible (2% of $300K home)	-$6,000
First check (ACV payment)	$4,500

You receive $4,500 up front. Your roofer quotes $16,000 for the job. That’s a $11,500 gap.

But $5,500 of that gap is recoverable. After the work is done:

Line Item	Amount
First check	$4,500
Recoverable depreciation (released after completion)	+$5,500
Total insurance payment	$10,000
Your actual out-of-pocket	$6,000 (your deductible)

Without collecting recoverable depreciation, you’d pay $11,500 out of pocket instead of $6,000. That’s a $5,500 mistake.

How to Collect Your Recoverable Depreciation

Step 1: Complete the Repairs

The insurance company requires proof that the work was actually done before releasing the held-back funds. This is a reasonable requirement — they want to ensure the money is used for its intended purpose.

The work must be completed within the policy’s timeframe. Most Texas policies require completion within 180 days to 1 year of the claim settlement. Check your policy for the exact window.

Step 2: Submit Documentation to Your Insurer

Once the roof is installed, send your insurance company:

• Final invoice from your contractor — showing the total cost of work performed
• Proof of payment — canceled check, credit card statement, or financing documents showing you paid (or committed to pay) the contractor
• Completion photos — before and after images of the new roof
• Permit documentation — if your municipality required a permit (McKinney does)
• Any change orders — if the scope of work changed during the project (additional decking replacement, for example)

Step 3: Request the Depreciation Release

Contact your insurance company — by phone and in writing — and formally request the release of recoverable depreciation. Reference:

• Your claim number
• The date the work was completed
• The total paid to the contractor
• The depreciation amount listed on your original claim estimate

Step 4: Receive Your Second Check

The insurer reviews your documentation and, if everything checks out, releases the depreciation amount. This typically takes 10-30 business days.

Keep in mind: The depreciation release is based on the amount listed on the insurance estimate, not your contractor’s invoice. If your contractor charged $16,000 but the insurance estimate listed $14,500 in replacement cost, you’ll receive depreciation based on $14,500. (The $1,500 gap may be covered through a supplemental claim.)

Common Mistakes That Cost Homeowners Thousands

1. Not knowing recoverable depreciation exists

This is the biggest one. Many homeowners receive their first check, see a number that doesn’t cover the full roof, and either:

• Pay the huge difference out of pocket without question
• Decide they can’t afford the replacement and do nothing
• Accept a lowball offer from a contractor willing to do the work for the ACV amount (which usually means cutting corners)

2. Missing the completion deadline

Your policy specifies how long you have to complete repairs and submit documentation. If you miss this window, the depreciation becomes non-recoverable — you lose it permanently.

The deadline varies by carrier but is typically:

• 180 days from the claim settlement date
• Up to 1 year in some policies
• Extensions may be available if you request them in writing before the deadline

3. Not completing the full scope of work

If the insurance estimate covers a full roof replacement but you only repair a section, the insurer may release only a proportional share of the depreciation — or deny the release entirely.

4. Poor documentation

If your contractor doesn’t provide detailed invoices, completion photos, and warranty documentation, the insurer can delay or deny the depreciation release. Work with a contractor who understands the insurance process and provides proper documentation.

5. Accepting an ACV-only settlement without fighting

Some adjusters present the ACV check as if it’s the final payment. It’s not. If you have an RCV policy, the depreciation is owed to you once repairs are complete. Don’t accept “that’s all we can pay” without verifying your policy type.

ACV Policies: When Depreciation Is NOT Recoverable

If your policy covers your roof at Actual Cash Value — not Replacement Cost — there is no recoverable depreciation. The depreciated amount is a permanent deduction.

This is why the ACV vs. RCV distinction matters so much. On an ACV policy, the check you receive is the check you get. There’s no second payment coming.

How to check: Look at your declarations page or call your agent. Ask specifically: “Is my roof covered at Replacement Cost Value or Actual Cash Value?”

If you’re on ACV and your roof is less than 10 years old, it’s worth asking your agent about switching to RCV before the next storm season.

What Your Contractor Should Tell You

A contractor who understands the insurance process will:

1. Explain the two-payment structure before you sign anything
2. Help you understand your out-of-pocket (deductible) vs. what insurance covers
3. Submit documentation to your insurer for the depreciation release
4. File supplemental claims if the insurance estimate doesn’t cover the actual scope of work
5. Never ask you to sign over your insurance check without explaining exactly how the payment process works

At Good Work Roofing, we walk every client through the insurance payment process step by step. We handle the documentation, work directly with adjusters on supplements, and make sure you collect every dollar your policy entitles you to.

Quick Reference: Insurance Payment Timeline

Step	When	What Happens
1. File claim	After storm/inspection	Claim is opened
2. Adjuster visit	7-14 days after filing	Damage is documented
3. First check (ACV)	5-15 days after inspection	You receive replacement cost minus depreciation minus deductible
4. Roof replacement	Within policy deadline	Contractor completes the work
5. Submit completion docs	Immediately after work is done	Invoice, photos, payment proof sent to insurer
6. Second check (depreciation)	10-30 days after submission	Insurer releases held-back depreciation

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Need help navigating a roof insurance claim? Good Work Roofing has helped hundreds of McKinney and DFW homeowners collect their full insurance payout — including recoverable depreciation. We handle the paperwork, attend adjuster meetings, and fight for every dollar you’re owed.

Schedule your free inspection or call (214) 836-4511.

Keep Reading

• ACV vs. RCV: The Insurance Policy Detail That Could Cost You Thousands
• What Happens During a Roof Adjuster Visit (And How to Prepare)
• The One-Year Deadline That Could Cost You a New Roof