What Is Recoverable Depreciation?

An RCV policy typically pays out in two pieces. The first check pays Actual Cash Value, the replacement cost minus depreciation for the roof's age. Once the homeowner submits proof the job is finished, usually a completed invoice and sometimes photos, the insurer releases the second check, the recoverable depreciation, bringing the total payout up to the full RCV amount. Non-recoverable depreciation, by contrast, is never paid back regardless of whether the job is completed, and shows up on some older or lower-tier policies.

The cost trend makes this matter more than it used to. Average residential roof replacement cost reached $17,631 in 2025, up 33% over the prior 4-year average, and average deductibles rose 22% in 2025 after a 15% rise in 2024. As both numbers climb, the gap between the first check a homeowner receives and the amount actually needed to complete the job grows, which is exactly the gap recoverable depreciation is designed to close once the job is done.

Because the second check depends on proof of completion, a roofing company's own paperwork, the completed invoice and any documentation the insurer requires, directly affects whether and how fast the homeowner gets paid in full. Sales reps who understand this process can set homeowner expectations correctly from the first conversation instead of leaving it as a surprise late in the job.