What is recoverable depreciation?

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PostPosted: Sat Aug 11, 2012 9:55 pm   Post subject:   

Bill is quite correct. Insurance is not premised on providing anyone a profit. The insurance company promises to pay the Actual Cash Value of a loss, and may include a replacement cost increase. A contractor is not expected to work for free, and, personally, I think contractors are wrong to figure out how to include a homeowner's deductible in the final billing to the homeowner.



The insurance payment to the contractor is not profiting the homeowner, and the contractor is being compensated by the homeowner with insurance company money. It's the same as having your medical insurance pay a doctor's bill. The doctor does not customarily try to find a way to include the patient's deductible in his bill.



The homeowner agreed to absorb those first few hundred or thousand dollars in exchange for a lower premium. When the contractor "does the homeowner a favor" as Bill suggests, the homeowner has a "gain" -- not at the insurance company's expense, but at the contractor's. I know times are tough, and there's a lot of competition for small construction jobs, and it's probably impossible to get all the contractors onto the same page. But you fellows/ladies who perform these insurance repairs are cutting your own throats. Why do that?



If the homeowner thinks the job can be done for less, then let him do it himself -- if he can. Otherwise, state your price, and earn a decent living, and provide for your family.



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PostPosted: Tue Sep 18, 2012 3:11 pm   Post subject: Replacement Cost Depreciation Request  

I completed the work on my roof & am not sure how to submit my depreciation request on my invoice & what the insurance company requires on my invoice. I have RCV on my policy & listed myself as the General Contractor. Thank you for any advice you can provide.


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PostPosted: Tue Sep 18, 2012 7:47 pm   Post subject:   

You submit your invoice for the materials you purchased to complete the roof repairs, plus the cost of any laborers you hired to perform the work. You may add a reasonable amount of labor for your own contribution to the repairs. But the total labor amount cannot exceed what a licensed contractor would have charge for the same work.



In other words, if a contractor would have charged $7000 for labor and materials (and their profit "holdback"), your invoice cannot exceed that amount. If the job would have been completed in one day by four experienced laborers at a cost of $2500, the fact that your laborers took three days and cost $3000 is inadequate to support reimbursement for that higher amount. (By the same token, if your regular wage is $250 per hour as a lawyer, for example, you cannot bill $250/hour as a roofing laborer.)



You will be paid the difference between what you have already received and the total invoice you present to the insurance company (accounting for your deductible which was withheld from your initial payment). You cannot simply ask for $xxx as depreciation without documentary support.



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PostPosted: Thu Jan 10, 2013 8:28 pm   Post subject:   

recent damage to the bed of my truck amount s to approx. 3500.00 ,how much does this deminish the value of the

Truck after it is repaired ?

before value was approximately $22,000.00


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PostPosted: Fri Jan 11, 2013 12:01 am   Post subject:   

No one here can answer that question for you. You will need to have your vehicle appraised in person for that information. Just take it to a dealership and ask them.



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PostPosted: Wed Mar 27, 2013 11:15 pm   Post subject:   

You know. The record needs to be set straight... we are not looking to profit from our loss, we just want to be treated fairly. So we pay month after month, year after year, thousands, tens of thousands... then we have some "event" (which in our own little world is hugely important) and then we have these insurance companies (who faithfully accept our checks throughout the years) tell us that we are willing to give you a little bit of what you paid out back but minus this and that (not without receipts) and always minus the deductible.



No one is ever going to make me feel bad for any insurer. The most profitable industry in the world. (maybe behind gambling and porn but still up there) Just Google "insurance industry profits"


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PostPosted: Thu Mar 28, 2013 12:10 pm   Post subject:   

Quote:
So we pay month after month, year after year, thousands, tens of thousands... then we have some "event"
This demonstrates Mike B's lack of understanding about property and casualty insurance.



Mike B seems to think he should be storing up some kind of reserve account for the eventual payment for "some event". But that's not the way P&C insurance works. You are paying for coverage one year at a time. You have a loss or you don't. If you have a loss during the policy year, if it's covered, you get a payment. If you have no loss, life is good, but you paid for the peace of mind that allowed you to sleep at night instead of lying awake wondering what might happen if . . . .



Quote:
we are willing to give you a little bit of what you paid out back but minus this and that
More proof of the failure to understand how P&C insurance works.



When you go to a restaurant for a nice dinner, and it becomes your favorite place, do you think that the $50 you are paying for your steak and beverage each time is building up some kind of reserve back in the kitchen? Certainly, an 8 ounce filet mignon, a 12 ounce imported beer, a baked potato, salad, vegetable, roll & butter, and a dessert doesn't cost the restaurant that much money.



When you come in the next time, but have no money to pay for a meal, because you've been such a good customer over the past several years, do you expect them to give you a free meal? The restaurant may not be as profitable as the insurance company, but both are in business for the same reason: to make money.



The restaurant stays in business by serving good food at a reasonable price. The insurance company stays in business by paying claims. The restaurant serves good food one meal at a time. The insurance company collects premiums and pays claims one year at a time. Neither business gives you a credit for the unused value.



That's what Mike B seems to think insurance companies should do.


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PostPosted: Tue Apr 23, 2013 7:39 am   Post subject: roof hail damage recoverable depreciation.  

What is a certificate of completion for a roof repair. My roofer has completed the roofing job and I need to be reimbursed for my recoverable depreciation. The roofing contractor says he has never been asked for this by an insurance company before. Question


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PostPosted: Tue Jul 15, 2014 8:28 pm   Post subject: Recoverable Depreciation  

my insurance company drop me after my claim, it took awhile to get the roof done, but its done. can i still get the recoverable depreciation,even though Iam no longer with them?


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PostPosted: Wed Jul 16, 2014 4:04 am   Post subject:   

Quote:
can i still get the recoverable depreciation,even though Iam no longer with them?
An insurance company will usually put you on notice how long you have to submit the proper documentation to recover the difference. Call you carrier or agent and ask.


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PostPosted: Wed Jul 16, 2014 3:49 pm   Post subject:   

Quote:
it took awhile to get the roof done
Are we talking about months or years? Normally, a person has 180 days to complete repairs unless granted an extension for cause by the insurance company. To get the extension of time, one must first contact the insurance company. That probably did not happen in this instance. And the insurance company is not obligated to grant an extension, but usually will when the circumstances dictate -- inavailability of materials is one, but I've never seen a shortage of roofing materials, even after a disastrous fire or tornado event.


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PostPosted: Thu Sep 04, 2014 9:20 pm   Post subject: ACV Coverage and Recoverable Dep  

Thanks for addressing my question. Our cedar shake roof coverage had been downgraded to ACV due to age. (interestingly, another policy holder was grandfathered the RCV coverage.) We received a settlement resulting from hail damage. We think we can get a proper roof for less than the ACV amount paid out to us. The settlement for the roof included recoverable depreciation for skylights. Can we recover that depreciation if we submit receipts for the new skylights or will the insurer require us to prove we paid the entire ACV amount allocated for the new roof ?


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PostPosted: Mon Sep 08, 2014 3:31 pm   Post subject:   

First,

Quote:
(interestingly, another policy holder was grandfathered the RCV coverage.)
How do you know this? If you were discriminated against in some fashion, you may have a case against the insurance company for bad faith.



Did the insurance company specify amounts for the skylights as separate cost items? If so, you only need to provide receipts for the actual cost to replace those items (labor & materials). The rest of the roof would be a separate issue.


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PostPosted: Sat Feb 21, 2015 7:33 pm   Post subject: Time line for recoverable depreciation  

We have been fighting our insurance company for almost a year on our claim.. We wen through the appraisal process and finally settle on the structure part. Now they are telling us that we have to be done with our house in two months to recover the depreciation. There is no way that this will happen and with all our bids we know we will need that to complete the construction. Is there anyway to get more time since the year our policy states was all chewed up by this fight? Thanks for any comments


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PostPosted: Sun Feb 22, 2015 8:04 am   Post subject:   

You don't mention the kind of damage you have claimed.



When EXACTLY did you finalize the settlement amount on your structural damage claim?



Normally, repairs must be completed with 180 days of loss to obtain the recoverable depreciation amount. A building contractor will often contract to complete the work using the initial funds provided by the insurance company, knowing that he will receive the balance once the work is complete.



However, if the insurance company has been stringing you along, you should be given the additional time to complete repairs. If they refuse, you could have the basis for a great BAD FAITH case against the insurance company.



You need to talk to a Claims Dept Manager -- NOT the claims adjuster you have been dealing with all along, and request the time needed to complete repairs.



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