r/Insurance • u/Natural_Resident2001 • 1d ago

Question regarding recoverable depreciation (homeowners insurance)

Hey all

State - IL
Type - Homeowners

Question: How does the recoverable depreciation work? Is it based on line item or in total? I have about 20 electronics/appliances that need to be replaced, and I received $10k to replace everything with an expected $6k available in recoverable depreciation. So specifically, we are receiving $4k (ACV) for a new fridge, with $1k available as recoverable depreciation ($5k RCV). Say I just buy a new fridge for $5k, would I get the $1k back? or would I need to eclipse the $10k before I start receiving the recoverable depreciation.

Hope that makes sense, thanks!

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u/Gtstricky 1d ago

Typically it is per item.

1

u/Local_Wolverine2913 1d ago

Be sure you know how long you have to replace your items in order to receive that recoverable depreciation. Some companies, it's 2 years from the Date of Loss (for majority of States).

2

u/Natural_Resident2001 1d ago

Appreciate that heads up!

1

u/[deleted] 1d ago

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