Recoverable Depreciation

[shick33]

What is the name of your state (only U.S. law)? Texas

I had substantial damage to my home from Hurricane Ike. I have a
> replacement cost policy with Texas Windstorm through Allstate. I have
> received an estimate from my insurance adjuster for several thousand dollars.
> They are withholding $9,000 called Recoverable Depreciation. I
> understand that RD is money that will be given to me after I provide
> proof of repairs.
>
> My question is: If I decide that I do not want to pursue these major
> repairs can I take this money, including the Recoverable
> Depreciation---demo my existing home and rebuild either on the same
> site or somewhere else? I would like to know my options.
> Since these repairs will require almost a re-gut/redo I will probably
> need to relocate while they are being done. I know I cannot rebuild/replace my home for what the insurance is going to pay but it would be a good down payment.

I own the home so there is no lien holder.

 

[moburkes]

What is the name of your state (only U.S. law)? Texas

I had substantial damage to my home from Hurricane Ike. I have a
> replacement cost policy with Texas Windstorm through Allstate. I have
> received an estimate from my insurance adjuster for several thousand dollars.
> They are withholding $9,000 called Recoverable Depreciation. I
> understand that RD is money that will be given to me after I provide
> proof of repairs.
>
> My question is: If I decide that I do not want to pursue these major
> repairs can I take this money, including the Recoverable
> Depreciation---demo my existing home and rebuild either on the same
> site or somewhere else? I would like to know my options.
> Since these repairs will require almost a re-gut/redo I will probably
> need to relocate while they are being done. I know I cannot rebuild/replace my home for what the insurance is going to pay but it would be a good down payment.

I own the home so there is no lien holder.

The answer is in your policy.

 

[JustAPal00]

Read your policy, but most likely not. You will probably have to rebuild at the present location to get the RD money.

 

[auntlemon33]

Have you been advised at all that the home is a total loss? If not, than the probability of receiving enough funds to totally rebuild may not be an option. Call your adjuster and look over your policy jacket.