Key numbers
State Farm paid more than $3.8 billion for hail-damaged home repairs and over $1.2 billion for auto repairs in 2024 (State Farm (newsroom), 2024).
| 50% | The U.S. saw 50% more hail claims in 2023 than in any of the previous four years, per Verisk. Source: Verisk (ISO ClaimSearch), 2023 |
|---|---|
| 621,945 | May is the peak month for U.S. hail loss claims, with 621,945 claims over 2017-2019, followed by June (586,749). Source: National Insurance Crime Bureau, 2017-2019 |
Yes, if the work is not finished and invoiced within your policy’s time limit, if the final invoice is lower than the scope the insurer paid for, or if your policy settles the roof at actual cash value. Recoverable depreciation is the part of a replacement cost claim the insurer holds back until the repairs are done. You only get it by finishing the work and proving it, on time. Here are the seven ways it most often gets lost, and how to protect it.
How recoverable depreciation works
On a replacement cost policy, the first check is the replacement cost minus depreciation and minus your deductible. The Texas Department of Insurance describes the second step: after the insurer receives the bill for the finished job, it pays the amount it kept for depreciation, and you usually must finish repairs within a set period. Colorado works the same way under most policies.
| Example | Amount |
|---|---|
| Roof replacement cost | $16,000 |
| Depreciation held back | $5,500 |
| Deductible | $2,000 |
| First check | $8,500 |
| Second check, if completed and invoiced on time | $5,500 |
Seven ways homeowners lose it
- Missing the deadline. Your policy sets the time limit, and it varies by carrier. Our article on how long you have to complete repairs and recover depreciation explains how to find yours. If you might miss it, ask for an extension in writing before it passes.
- Having an actual cash value roof. Some policies or endorsements settle roofs at actual cash value, especially older roofs. Then there is no second check at all. See the trend in deductibles and roof settlements and how ACV and RCV roof coverage differ.
- Doing less work than the scope. If the insurer paid for a full replacement and only part of it is done, it releases depreciation only for the part completed.
- Sending an invoice for less. The insurer pays up to what the work actually cost. Read comparing a roof bid to your claim.
- Letting the mortgage check sit. The first check often names your lender; until it is endorsed, the job cannot start. See mortgage company endorsements.
- Never sending the final invoice. Nothing is released automatically. The insurer waits for proof of completion.
- Waiting on permits and inspections. In El Paso County a Pikes Peak Regional Building Department permit is valid for 180 days, extendable once for 180 days, and reroof inspections are not same-day or next-day after a big storm. Plan around it.
Colorado and Texas notes
- Colorado total loss: after a total loss, C.R.S. 10-4-110.8 gives you at least 365 days after additional living expense ends to replace property and receive recoverable depreciation, and much longer after a declared wildfire. See our disaster recovery guide.
- Colorado hail or wind claim: the time limit comes from your policy. Get your policy within three business days of asking (C.R.S. 10-4-110.8) and read the loss settlement section.
- Texas: TDI notes you usually must finish repairs within a set time period. Check your policy and ask your adjuster.
Protect it: a checklist
- Find the depreciation deadline in your policy or claim letter and put it on your calendar.
- Endorse and send the mortgage check right away.
- Sign with a contractor who can schedule inside your deadline.
- Make sure the contract scope matches the insurer’s scope, line by line.
- Get the final invoice and completion photos the week the job is done.
- Send them to the insurer and keep proof you sent them.
- If anything slips, request an extension in writing before the deadline.
For the order of events from the storm onward, see our hail claim timeline for Colorado and Texas.
Close it out with us
We schedule claim jobs with your deadline in mind, document the finished roof with photos, and get you the final invoice promptly so nothing gets missed. The claim stays yours. Integrity Roofing and Painting is veteran-owned and family-run since 1990, an Owens Corning Platinum Preferred contractor with 650+ Google reviews. Book a free inspection in Colorado Springs at (719) 488-2800 or Denver at (303) 209-0152, or read about roof replacement in Colorado Springs.
Sources: Texas Department of Insurance, Home insurance guide; C.R.S. 10-4-110.8 (unofficial reproduction); PPRBD, Hail & Disaster Information.
