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Homeowners insurance claim and depreciation

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I had a covered property damage homeowners claim.  The damages estimate is for approximately  $8,000.  Less depreciation of $1,500 and my $1,000 deductible, the insurance company sent me a check for $5,500.  My mortgage company will sign the check and does not require any additional proof since it is below their threshold.  I have found a contractor to do the repair work for a total of $4,000.  Can I still recover the depreciation which has been held back?  If so, what documents do I provide the insurance company?

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rated:
Depreciation and having someone repair it for less than the net proceed are not related.

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I think the answer is "Yes"....you will probably have to submit some type of "Certificate of Completion" form that the contractor signs indicating the repair work has been completed and/or possibly send in some pictures showing the work has been completed.

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You might need to show the repairs totaled more than 6500 for them to cut you a check. You might be able to get the contractor to give you a bill for the full 8k and submit that. This could be fraud or unethical so it's something for you to ponder before you do it.

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ClaimsGuy said:   I had a covered property damage homeowners claim.  The damages estimate is for approximately  $8,000.  Less depreciation of $1,500 
  What depreciation? Houses don't usually depreciate like cars. If the damage is $8K, that is what you should get, less the deductible. 

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$8k is only an estimate. contractor might find that actual repair costs are $10k.

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atikovi said:   
ClaimsGuy said:   I had a covered property damage homeowners claim.  The damages estimate is for approximately  $8,000.  Less depreciation of $1,500 
  What depreciation? Houses don't usually depreciate like cars. If the damage is $8K, that is what you should get, less the deductible. 

  Homeowners insurance pays out on an actual cash value basis.  Once repairs are made, they will pay out on a replacement cost basis.  Depreciation is the difference between the replacement cost and actual cash value.

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Most of the time insurance companies will offer  home owners a small amount to close the claim and this amount might not be enough to pay for all your damages. I always recommend hiring a public adjuster so they can do a professional estimate and work with your insurance company to make sure you receive the right payment to cover all your costs. 
 

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