<I posted this in the business forum as well, but thought id ask here as well.>

Guys, im confused and need someone to please help me explain this to me. I called my insurance company and they confused me even more.

I filed a claim with my insurance company for roof damage. the adjuster came out, assessed the damage and cut us a check and sent us a pdf breakdown of our replacement costs. The numbers are as follows

Replacement cost value: 8673.59
less Depreciation: -2235.94
Actual Cash Value: 6437.65
Less Deductible: 1717.55
Net Claim: 4720.10
Total recoverable depreciation: 2235.94
net claim if depreciation is recovered: 6956.04


I was cut a check for our net claim came:$4720.

My question is, if I find a roofing contractor that can do the work for less than $4720, am i entitled to recieve any of my recoverable depreciation back? Please explain.

Thanks

Nope.

As for your explanation, recoverable depreciation is only paid if necessary to compensate you for your expenses. If you don't spend it, you don't get it. My advice, if your 3 bids don't go past the amount you've already received, is to look for some upgrades that allow you to take advantage of the recoverable depreciation dollars.

Tony,

Email me at cjones at nelsonjones dot com and
I'll try to help you.

No. You are only entitle to the amount above the actual cash value. You would have to spend 6437.65 before you would be eligible for any recoverable depreciation. Then it is paid on an incurred basis. If you spend $6500, then you will only get 62.35. Hope that helps.

Replacement cost value: 8673.59
less Depreciation: -2235.94
Actual Cash Value: 6437.65
Less Deductible: 1717.55
Net Claim: 4720.10
Total recoverable depreciation: 2235.94
net claim if depreciation is recovered: 6956.04


[This message has been edited by Cadet05 (edited 6/9/2011 5:26p).]