My insurer paid less than the repair cost and took off depreciation. Is that right?

Home insuranceDeniedTexasChecked Nov 6, 2026

From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-06 · Source: TDI View original ↗

In short

Actual cash value is the cost to replace minus wear and age.
With replacement cost, the rest comes after you start repairs.
Send repair bills and proof of work to get the rest.

What this means

Your home policy pays one of two ways. Replacement cost pays today's price to fix or replace things [1]. Actual cash value pays that price minus depreciation, which is lost value from age and wear [1].

If you have replacement cost coverage, the first check is often the actual cash value [2]. After you start repairs and show proof, the company sends the rest [2].

Your next step

Once you've started repairs and show proof to your company, it sends you the remainder [2]. If you disagree about the amount, you can ask for an appraisal [3]. The deadline these sources give is 15 business days for the company to accept or deny a claim once it has all it needs [4].

Check it yourself

Open the first source above and read the part quoted. Your own policy papers hold details these sources do not give: "Don't know yet" for your case.

Where this comes from (5)

[1] TDI · checked 2026-11-06
Replacement cost coverage pays to repair or replace your house and personal property at current prices. For example, say you bought a new roof 10 years ago and the current price for a new roof is $10,000. If you have to replace your entire roof after a storm, a replacement cost policy would pay for a new roof at today's prices. If you have a $2,000 deductible, your company would pay $8,000. Actual cash value coverage…
[2] TDI · checked 2026-11-06
The first check your company will send you will likely be for the actual cash value. Once you've started repairs and show proof to your company, they'll send you the remainder to equal the replacement cost
[3] TDI · checked 2026-11-06
Ask for an appraisal. The appraisal process is for disputes about the amount of your claim. It isn't for disputes about whether your policy covers a loss
[4] TDI · checked 2026-11-06
Accept or deny your claim within 15 business days of getting all the information it needs from you. If the company denies your claim, it must tell you why in writing … Send you a check within five business days after it agrees to pay your claim
[5] TDI · checked 2026-11-06
Companies have 15 days to respond to us and can ask for a 10-day extension … Settle disputes when you and the company disagree about the facts

How we found this

We matched your question to 5 official sources, quoted the exact lines, and re-checked each quote against its source on 2026-11-06.

What we don’t know yet

Your own plan or notice may say something different. If your letter cites another rule, send it and we will look again.

Every answer is checked against the official rule it quotes.

Information only — not legal advice. Your plan, insurer or agency decides.

This answer quotes the official sources listed above, with the date we checked them. Your own policy, notice and state rules control. We are not your lawyer or your insurer. We don’t file, argue or negotiate claims for you — you send any letter or form yourself.

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