The second check is the one homeowners lose most often. Most replacement cost policies pay a hail claim in two installments. The first check arrives after the adjuster's visit. The second, often the larger share of the money, is held back as recoverable depreciation and released only after the roof is actually replaced and invoiced. Miss the paperwork or the deadline and that money quietly stays with the insurer. Here is how the mechanics work on a Lone Tree roof.
How the Two-Check System Works on a Roof Claim
When an adjuster approves a roof claim, the estimate starts with replacement cost value, or RCV: the full cost to replace the roof at today's prices. The insurer then subtracts two numbers. The first is depreciation, a deduction for the age and wear of the roof you lost. The second is your deductible. What is left becomes the actual cash value payment, the first check. On a replacement cost policy that depreciation is recoverable, meaning the insurer releases it once you show the work was completed and invoiced at the approved scope. It is a reimbursement, not a bonus. The policy pays what the replacement actually cost, up to the approved RCV, and only once the replacement happens.
The Deadline to Recover Roof Depreciation
Every policy sets its own window, and this is worth reading closely. Industry guides report that many policies allow roughly a year from the date of loss to complete the work and claim the held-back depreciation, though some run as short as 180 days and others as long as two years. The clock usually starts at the date of loss, not the date the first check clears. After a wide hail event, roofers and permit offices get busy, so a homeowner who waits until month ten is gambling. The full claims process, along with Colorado's SB 38 protections, is covered on our hail claims page.
How Lone Tree Homeowners Forfeit the Second Check
The insurer does not chase you to release this money. In practice the second check gets forfeited a few predictable ways:
- Pocketing the ACV check. The first payment goes toward something else, the roof never gets replaced, and the recoverable balance expires with the deadline.
- Waiting because the roof looks fine. Hail bruising rarely leaks in year one. The damage is real, but the window to be paid for it is not open-ended.
- Skipping the completion paperwork. The job gets done, nobody sends the invoice and certificate, and the release never gets triggered.
- Never knowing a second check existed. Settlement letters state the withheld depreciation in one line. Read fast, it looks like the claim simply paid less.
A Worked Example on a High-$800s Lone Tree Home
Numbers make the stakes clear, so here is an illustration built on typical Denver-metro ranges rather than any specific claim. Suppose a hail claim on a two-story home near Lone Tree Golf Club is approved at an $18,000 RCV. The roof was twelve years old, so the insurer applies $6,000 of depreciation. The policy carries a 1 percent wind and hail deductible, and on dwelling coverage in the high-$800s that commonly lands around $8,700.
| Line item | Illustrative amount |
|---|---|
| Replacement cost value (RCV) | $18,000 |
| Depreciation held back | $6,000 |
| Wind/hail deductible (1 percent) | About $8,700 |
| First check (ACV minus deductible) | About $3,300 |
| Released at completion | $6,000 |
The first check is about $3,300. The remaining $6,000 arrives only after the roof is replaced and documented. A homeowner who stops at the first check walks away from nearly two thirds of the approved money and still owns a damaged roof. Where those dollars sit against full project pricing is laid out in our cost guide.
The Paperwork That Releases the Depreciation Check
Insurers release the holdback against documents, not promises. A written contractor scope that matches the adjuster's line items keeps the two estimates reconciled from the start. At the end, the carrier typically wants a final invoice showing the completed amount, a certificate of completion, and photos of the finished roof. Roof replacements in Lone Tree also require a city permit, applied for electronically through the Building Division's Accela portal, and the passed final inspection is exactly the kind of third-party completion evidence that moves a release along. We assemble that package on every insurance job we run.
If hail has been through your neighborhood, start with a free documented inspection. You get a written photo report and a written scope, the two documents that carry a claim from first check to last, and our roof replacement team handles the rest.
Recoverable Depreciation Roof Claim FAQs
- What is recoverable depreciation on a roof claim? It is the portion of your approved roof settlement the insurer holds back for the roof's age and wear. On a replacement cost policy it is released after you replace the roof and submit the invoice and completion documents, so the claim ultimately pays what the work actually cost, up to the approved amount.
- How long do I have to recover depreciation on a roof? It depends entirely on your policy. Industry guides report that a year from the date of loss is common, with some policies allowing as little as 180 days and others up to two years. The window is usually measured from the storm date, so confirm yours in writing early.
- Can I keep the ACV check and not replace my roof? Usually yes, but you forfeit the recoverable depreciation when the deadline passes, and you still own a hail-damaged roof. Unrepaired damage can also complicate future claims and coverage renewals, so read your policy carefully and weigh the full approved amount against the first check alone.
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