Five pieces of claim vocabulary account for most of the confusion in a property settlement, and none of them is explained at the point it first appears on a letter. Recoverable depreciation, the supplement process, the examination under oath, the escalation route for a coverage dispute, and wind driven rain. Each is a normal part of claim handling, and each looks like an obstacle if nobody tells you what it is for.
Recoverable depreciation, and how it comes back
Under a replacement cost policy the carrier first pays the actual cash value, which is the replacement cost less depreciation for age and wear. The depreciation withheld is recoverable: it is released when the work is actually done and evidenced, normally against invoices and photographs, and often within a time limit set out in the policy. It is a sequence, not a deduction, and the two things that cost people money are not knowing it is claimable and missing the deadline to claim it.
The insurance supplement process
A supplement is a request to revise an agreed scope because something was missed or discovered once work started, which on an older building happens on most jobs. The insurance supplement process is ordinary: the contractor documents what was found, prices it on the same estimating basis as the original scope, and submits it with photographs. Supplements succeed on specificity and on timing. A supplement raised when the wall is open, with a photograph of what is behind it, is a different document from one raised after the wall is closed.
Examination under oath
An examination under oath is a formal recorded interview under the policy's conditions, conducted by the carrier's counsel, with you answering under oath about the loss and the claim. It is a contractual right the insurer holds and refusing it can void the claim, so it is not something to decline. It is also not routine on an ordinary loss: it usually appears on large claims, suspected fraud, or disputed circumstances. If you are asked for one, that is the point to take advice rather than the point to argue.
Insurance coverage disputes, and wind driven rain
Insurance coverage disputes escalate in an order: the coverage position in writing with its clause, a reinspection with specifics, then appraisal where the disagreement is about amount rather than coverage, then the state insurance department for claim handling failures. Wind driven rain coverage is the classic dispute: most policies cover rain that entered through an opening the wind itself created, and exclude rain that came in through a gap that was already there. So the argument is about the opening, not about the rain, and the evidence is the roof and the elevation photographs taken on the day.
Questions people ask about recoverable depreciation
What is recoverable depreciation?
The part of a replacement cost settlement held back at first payment for age and wear, released once the repairs are done and evidenced, usually within a deadline set out in the policy.
How do I get recoverable depreciation released?
Complete the work and submit the evidence the policy asks for, normally invoices and photographs, before the deadline. Ask the carrier in writing what documentation they require and by when.
What is an examination under oath?
A formal recorded interview under the policy's conditions, conducted by the carrier's counsel. It is a contractual right and refusing it can void the claim, so take advice rather than decline.
What is wind driven rain coverage?
Cover for rain that entered through an opening the wind itself created. Rain entering through a pre-existing gap is generally excluded, so the dispute is about the opening rather than the rain.