As a homeowner, it is important you understand how your claim may be settled, prior to a loss occurring. Doing so will save you time and provide peace of mind in the event you need to file a claim. When it comes to homeowners insurance, we understand certain terms can be confusing, especially should you need to file a claim. Florida Peninsula would not only provides you comprehensive coverage, but also provides you with information on Recoverable Depreciation so you may benefit from our experience.


What is Recoverable Depreciation?

Recoverable Depreciation in homeowners insurance refers to the amount of money withheld from your original payment for claimed damages recovered from your insurance carrier after a settled claim. Watch the video from Florida Peninsula’s Penny below, to learn more about recoverable depreciation



Actual Cash Value vs Replacement Cost Value

Depending on your specific policy, items may be paid at Actual Cash Value or at Replacement Cost Value. Policies with an Actual Cash Value (ACV) component will pay for damaged items at today’s value, after deducting for wear and tear, age, if newer models exist, etc, from the item’s original purchase price. The Replacement Cost Value component of a policy, will initially payout at Actual Cash Value, and will reflect the recoverable depreciation on your statement of loss.



How to Claim Recoverable Depreciation

Once the item is replaced and/or repaired, you may obtain the difference between the Actual Cash Value and Replacement Cost, called the Recoverable Depreciation, by submitting your receipts and proof of replacement or repair to your homeowners insurance carrier. As a result, you may receive more than one payment depending on your policy.


In the event you will need to file a claim, Florida Peninsula Insurance Company is here to assist our policyholders. Should you have any questions or concerns about how your claim payment will be made in regards to your policy and coverages, you may contact our Claims Department at 866-549-9672 or contact your agent.