How to Recover Depreciation on a Roof Replacement Claim

What Recoverable Depreciation Actually Is

Most insurance policies settle roof claims on a Replacement Cost Value (RCV) basis. That means once repairs are complete, the homeowner is entitled to be made whole — pay for the actual cost of the new roof, not the depreciated value of the old one.

But that's not how the first check arrives. The first settlement ships at Actual Cash Value (ACV) — replacement cost minus depreciation.

The difference between RCV and ACV is the recoverable depreciation. It's the second check. And your customer can't get it back without you.

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The Two-Check Settlement Process

1. ACV check arrives first (after the adjuster's scope is approved). Depreciation is withheld.
2. Homeowner hires you, completes the work, pays the invoice.
3. You supply a final invoice + certificate of completion + lien waiver proving the work was actually done.
4. Carrier releases the recoverable depreciation check — usually 14–30 days after submission.

If the work isn't completed, depreciation is forfeited. That's the policy.

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What the Carrier Needs to Release Depreciation

Every carrier is slightly different, but universally accepted:

• Final paid invoice matching or exceeding the approved scope
• Proof of completion — typically photos of finished work (same angles as pre-loss)
• Lien release / final-signed contract
• Mortgagee endorsement paperwork if the lender is on the check
• Adjuster's adjusted scope (matches your line items)

The invoice has to match the approved scope. That's why your estimating software matters — if your estimate doesn't reconcile with the adjuster's scope, releasing depreciation becomes an argument instead of a process.

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The Trap Contractors Fall Into

If you filed a flat-fee handshake invoice, the carrier's desk adjuster will:

1. Line-item the invoice against their approved scope
2. Refuse to release depreciation for items missing from your invoice (even if they were in the original scope)
3. Hold the second check for 30+ days for clarification

That's why line-itemized estimates — built from a real price list, with quantities and line-item totals — pay out faster. Software that outputs a reconcileable scope to the adjuster signature-by-signature literally reduces your depreciation-release timeline.

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How AutoScope Speeds Up Depreciation Release

AutoScope handles the full RCV workflow automatically:

1. Build the estimate from your local price list
2. Match approved scope and supplement line items against it
3. Generate the final invoice with full quantities, materials, labor breakdown
4. Auto-attach photos and lien waivers

Your customer gets the second check faster — and you get paid faster because the carrier has nothing to argue.

Try AutoScope free →