Who gets depreciation check if homeowner buys some of material, and contractor buys some of the material?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Feb 18, 2013

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Insurance Question from North Hills, CA

Asked on 02/18/2013

Who gets depreciation check if homeowner buys some of material, and contractor buys some of the material? Insurance estimate shows depreciation for certain materials, if the homeowners purchased the materials that have depreciation, who gets the depreciation check for that material, the homeowner who purchased the items, or the contractor?

Answer given on February 23, 2013

Your question is somewhat unclear, but it is presumed you mean that you were first paid a depreciated amount for your homeowner insurance loss. Then, when you made the repairs and submitted the bills, you were reimbursed for the difference between the actual cash value and the replacement cost of the materials.If that is the case, then you need to settle with your contractor for his expenses and labor costs for the repairs. If the amount he has received is sufficient for the repairs, then you would get the difference, since you too paid for some of the materials to make the repairs. The insurance company pays you for the repair costs, unless you have set up for payments to go to the contractor. In any event you must settle with the contractor or you might have a lien filed against your home. The cost of the materials is one thing, but you still have to pay for the labor to install them and that could cut into the difference in costs.

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