Most modern homeowners' policies in Texas are written as Replacement Cost Value (RCV) policies. However, the initial payment sent by the insurance carrier is usually the Actual Cash Value (ACV), which includes a deduction for the age and wear of the roof.
The difference between these two amounts is known as recoverable depreciation. This money is held back by the carrier until the repairs are completed and a final invoice is submitted to the adjuster.
Claim Deadlines
Homeowners should be aware that most policies have a specific timeframe—often 180 to 365 days from the date of loss—to complete the repairs and request the depreciation. Failure to file for this money within the window can result in the loss of those funds.
It is important to review your specific policy language or speak with your agent to confirm your deadlines. Once the contractor provides a certificate of completion and the final invoice, the carrier typically releases the remaining funds within 7 to 14 business days.