Guides ·
Recoverable depreciation, explained for New Jersey homeowners
Many homeowners are surprised by the first check. Here is why, and how to get the rest.
Two numbers on your estimate
Many policies pay in two parts. The first payment is the actual cash value, or ACV: the cost to repair minus depreciation for age and wear. The part held back is the depreciation. If your policy pays replacement cost, much of that held-back amount is recoverable once the work is done.
A simple example
Say the estimate to replace a damaged floor is $20,000 and the adjuster applies $6,000 of depreciation. The first check is $14,000, less your deductible. After the floor is replaced and you send proof, the carrier releases the recoverable $6,000.
How to get it released
- Finish the repair covered by the estimate.
- Send the final invoice and completion photos to your adjuster.
- Note any changes in scope, with photos, as a supplement.
- Watch the deadline. Your policy sets how long you have to complete repairs and claim it.
Why documentation matters
The release is based on proof. An itemized final invoice that matches the estimate, plus clear before and after photos, keeps the last payment from stalling.
This guide is general information, not legal or insurance advice. Your policy and your adjuster decide what is covered. We are not public adjusters and do not negotiate claims.