DIY Guide: Understanding Your Insurance Payment When a Mortgage Company Is Involved (and What “Recoverable Depreciation” Really Means)
You’ve just filed a claim for water, fire, or storm damage. The adjuster’s been out, the estimate is approved — and now your first check shows up… But it’s made out to you and your mortgage company. And to make things more confusing, the total payout doesn’t even match the full estimate amount.
Welcome to the world of insurance claim payments — where terms like ACV, RCV, and recoverable depreciation can make your head spin. Here’s a simple explanation of how it works, and why most homeowners let restoration professionals like Kingship Restoration Services handle the paperwork for them.
Step 1: Understanding ACV vs. RCV
Insurance companies typically pay your claim in two parts:
Term
Meaning
When You Get Paid
ACV (Actual Cash Value)
The depreciated value of your damaged property (like “used” value).
Up front
RCV (Replacement Cost Value)
The full amount it costs to replace new for old.
After work is complete
Recoverable Depreciation
The “difference” between ACV and RCV that you recover after repairs.
Once repairs are verified
Step 2: Why the Check Lists Your Mortgage Company
If you have a mortgage, your lender has a financial interest in your property — meaning they want to ensure repairs are actually completed.
That’s why insurance checks are often payable to:
“Homeowner Name and Mortgage Company Name”
You’ll usually need to:
- Endorse the check.
- Send it to your mortgage company’s Loss Draft Department.
- Wait for them to release or co-endorse funds in stages as repairs progress.
Some lenders require inspection photos, signed contracts, or lien waivers before releasing full funds.
Sounds simple — but each mortgage company has its own forms, timelines, and inspection rules.
Step 3: The DIY Paperwork Maze
If you handle it yourself, you’ll be juggling:
- Adjuster documentation
- Mortgage company inspection requests
- Contractor progress invoices
- Recoverable depreciation proofs
- Conditional lien releases
Missing one form or photo can delay your final payment by weeks or even months.
That’s why most homeowners let the restoration contractor coordinate directly with the adjuster and lender.
Step 4: How Kingship Restoration Services Simplifies It
At Kingship Restoration Services, we manage the process from start to finish:
✅ Handle all communications with your adjuster and mortgage company.
✅ Provide detailed Xactimate estimates and repair photos for approval.
✅ Submit completion documents for recoverable depreciation release.
✅ Keep your funds flowing so your repairs stay on schedule.
We know exactly what lenders and insurers require — so you don’t have to chase paperwork or wait for calls back.
Pro Tip: Keep Your Out-of-Pocket Clear
Most policies require you to pay your deductible before work begins.
This is your only required out-of-pocket cost — everything else comes from the insurance payout.
We’ll clearly show you:
- Your total claim amount
- Deductible amount
- Recoverable depreciation balance
- Mortgage company’s release schedule
Transparency and speed = faster restoration and less stress.
Final Takeaway
Dealing with insurance and mortgage companies after a loss can feel like a full-time job.
The paperwork, the forms, the inspections — all while you’re trying to repair your home.
That’s why hundreds of homeowners in Phoenix, Scottsdale, and Maricopa County trust Kingship Restoration Services to handle the entire process — from mitigation to final payment.
Let us do the heavy lifting — you focus on getting life back to normal.
- www.kingshipwaterremoval.com
- in**@*****************on.com
- (623)777-5896