Claim words
Recoverable depreciation
The part they still owe you once you replace the item.
What it means for your money
On a replacement cost policy the insurer holds back the depreciated amount at first and releases it after you have actually bought a replacement. That withheld money is yours, conditionally.
It is conditional on two things people miss: you have to replace the item, and you usually have to claim it within a deadline set by the policy. Nothing arrives to remind you, so an unclaimed balance simply stays unclaimed.
Find the claim deadline in your policyWhere the number comes from
It is the depreciation figure on your schedule. If your settlement shows a replacement cost and an actual cash value, the difference between them is what is being held.
See this on a real washing machine
- Washing machine, replacement cost
- $950
- Actual cash value paid up front
- $520
- Held back as recoverable depreciation
- $430
- Released when you send the receipt
- $430
The $430 is not a reduction, it is a second payment waiting on proof you replaced the machine. Miss the policy's deadline and it stops being available.
Recoverable depreciation sits next to depreciation, actual cash value and replacement cost. They tend to arrive together.
Guides that use this wordRecoverable depreciation: how to get your withheld money backHow to read a depreciation schedule from your insurerActual cash value vs replacement cost: what it means for your belongingsHow long does a home insurance claim take?
Indemnia builds the itemized list this all gets applied to, with the receipt attached to the line it proves. See how it works.