Home insurance claim question/concern

[origami]

I have a large homeowners insurance claim from water damage. My policy is a replacement cost policy (not actual cash value). All of the documentation I got from the claims dept has then deducting depreciation and sending me the actual cash value. I called my claim rep who said (after 2 confusing phone calls with missed messages) they send out actual cash value amounts initially and then after I pay for things and submit receipts they’ll send me the depreciation amount. So in the end I get the replacement cost, but not up front. Is this normal? I’m nervous that by accepting this wrong amount now they’ll act like we never had this conversation about depreciation reimbursement later.

[flygirl]

I think you may have it backwards. They would send the depreciated value of the items first and then once you submit receipts they would send the difference between the depreciated amount and the actual replacement cost. But I haven’t had a claim like that so I don’t really know if it’s normal or not but I would guess so since they don’t know what the cost is to replace all the items up front.

[Dusky]

This is normal. We recently had our siding replaced due to the storm damage. Our original siding was aluminum, which is no longer available in our area. The replacement siding was all vinyl, which was considered less valuable. Our insurance company sent a check for the replacement cost first. Once the work was fully completed, they sent out the depreciation check. Essentially, the insurance company is assuming, based on reasonably available supplies, that your home can't be repaired to the same value it had prior to the damage so they're offering a deprecation value to make up the difference. But since, for their purposes, your home value hasn't actually depreciated until the repair is complete they hold the depreciation reimbursement until the end.

[definitelyO]

yes.

they send you the depreciated amount (maybe 75%) and then if you do actually replace the items they'll make you whole. It's in case you don't actually replace the items/damage.

[origami]

Thanks!