Non-recoverable depreciation is depreciation that is withheld and not paid back to the policyholder after repairs are completed.
Why It Matters
This affects the homeowner’s out-of-pocket expectations. Two claims can look similar but pay differently depending on whether depreciation is recoverable.
Common Problems
Common confusion includes assuming all depreciation comes back, overlooking policy limits, and comparing claim totals without understanding ACV, RCV, and deductible lines.
Building Codes & Industry Standards
Depreciation is an insurance policy and claim-payment concept. Repairs still need to follow applicable code, manufacturer requirements, and proper construction standards.
Exterior Echelon Notes
Exterior Echelon can help explain exterior repair scopes, but claim payment questions should also be reviewed with the insurance carrier or a qualified insurance professional.
