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?
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.
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.
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.
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.
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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