Recoverable Depreciation

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What Is Recoverable Depreciation

Recoverable Depreciation is the gap between replacement cost and Actual Cash Value (ACV). You can recover this gap by providing proof that shows the repair or replacement is complete or contracted.
 

How Do You Get Paid For Your Loss?

First, we’ll pay you the actual cash value (ACV) for your damaged property, minus your deductible. You can use this to either begin the repair work or to replace your property altogether. Before receiving additional payments, you may need to show a signed contract that repairs have been completed or property has been replaced.
 

How Do You Collect Full Replacement Value?

Your policy may provide replacement cost for your home and personal property. However, we don’t pay your replacement cost until you’ve repaired or replaced the damage.
 
As a result, you may receive more than one payment for your recoverable depreciation – this will be whatever the difference is between the ACV and the replacement cost.
 
Invoices or receipts help you receive your replacement cost payment.
 

How Does the Claim Payment Work?

ACV is the cost to repair or replace damaged property, minus depreciation. Depreciation is the loss of value over time and can be impacted by age, disuse and condition.
 
For example, if someone steals your TV and you have replacement cost coverage, your claim information may look something like this:
 
  • Original cost - $900
  • Cost to replace your TV today - $900
  • ACV after depreciation - $750
This means our first payment to you would be:
 
$750 - your $500 deductible = $250
 
After you buy your new $900 TV and show us your receipt, we’d make a second payment to you of $150.
 

Are You Covered?

You should review your policy regularly to ensure you have enough coverage. If you have questions about your policy’s property coverage, we can help. Speak with one of our specialists at 888-413-8970.
 
Summaries of coverages and policy features are for informational purposes only. In the event of loss, the actual terms and conditions set forth in your policy will determine your coverage.

AARP and its affiliates are not insurers. Paid endorsement. The Hartford pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP membership is required for Program eligibility in most states.

The AARP Automobile Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ by Hartford Insurance Company of the Southeast; in CA by Hartford Underwriters Insurance Company; in WA, by Hartford Casualty Insurance Company; in MN, by Sentinel Insurance Company; and in MA, MI and PA, by Trumbull Insurance Company. The AARP Homeowners Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ by Hartford Insurance Company of the Southeast; in CA by Property and Casualty Insurance Company of Hartford; in WA, MI and MN, by Trumbull Insurance Company; in MA, by Trumbull Insurance Company, Sentinel Insurance Company, Hartford Insurance Company of the Midwest, and Hartford Accident and Indemnity Company; and in PA, by Hartford Underwriters Insurance Company. Not available in all states, including FL. Specific features, credits and discounts may vary and may not be available in all states in accordance with state filings and applicable law. Applicants are individually underwritten and some may not qualify. The Program is currently unavailable in Canada and U.S. Territories or possessions.

1 In Texas, the Auto Program is underwritten by GEICO Texas County Mutual Insurance Company through Hartford Fire General Agency. Hartford Fire Insurance Company and its affiliates are not financially responsible for insurance products underwritten and issued by GEICO Texas County Mutual Insurance Company. The Home Program is underwritten by Trumbull Insurance Company. Effective 10/16/21, the Auto Program is underwritten by Trumbull Insurance Company.

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