Depreciation?!? Why did my insurance company not send me all of the money to repair or replace my roof??

What is depreciation?
Over time your home and most of its contents lose value over time due to factors like age, wear and tear, etc.  This loss in value is called Depreciation.

If it costs me more to replace the depreciated item(s), why didn't my insurance company pay that amount?
Under most insurance policies, claim reimbursement begins with an up-front payment for the Actual Cash Value of your damage, or the value of the damaged or destroyed item(s) at the time of loss.

If you have coverage included in your policy, you may be able to receive money to cover the Depreciation of these items.  If this is the case, reimbursement (which may involve two or more payments) comes once you repair and/or replace the damaged or destroyed items and provide your insurance company with documentation, or proof.

How do you know if you have Replacement Cost coverage?
Your insurance settlement statement should include a line item on the totals page that states something to the effect of Total Recoverable Depreciation OR Total NON-Recoverable Depreciation.  If there is an amount listed at Recoverable, then you may be entitled to the depreciation amount...If there is an amount listed at NON-Recoverable, then there may be some money that will not be applied to the claim.  The BEST way to know if you have Recoverable Cost coverage is to call your insurance company and ask.