Glossary

Holdback

The part of a claim payment the insurer keeps back until repairs are finished and documented, usually the depreciation on a replacement cost claim.

Also called: depreciation holdback, claim holdback, withheld depreciation

On a replacement cost claim, most insurers first pay the actual cash value: the replacement cost minus depreciation, minus your deductible. The depreciation they keep back is the holdback. You collect it after you repair or replace and send proof, such as invoices and receipts. It is also called recoverable depreciation.

Say a roof estimate is $18,000 replacement cost with $6,000 of depreciation and a $2,000 deductible (hypothetical numbers). The first check is $10,000. When the new roof is installed and you submit the final invoice, the insurer releases the $6,000. If the invoice comes in lower than the estimate, the release is typically limited to what you actually spent.

Watch the deadlines. The standard ISO form lets you claim on an actual cash value basis first, but you must tell the insurer within 180 days of the loss that you intend to claim the rest. Many insurers add their own time limits for finishing repairs.

The word is also used for money your mortgage servicer holds. When the lender is on the check, it may place proceeds in a restricted account and release them in stages as work is inspected. The guides on getting the rest of your claim and why your mortgage company is on the check explain both.

Last reviewed October 10, 2026

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Related terms

Recoverable depreciation The part of a replacement cost payment an insurer withholds at first and releases after you finish the repair or replacement and send proof of the cost. Actual cash value What an insurer pays for damaged property: the cost to repair or replace it today, minus a deduction for age and wear, so less than a new-for-old payment. Replacement cost What it would cost to repair or rebuild with materials of like kind and quality at today's prices, with no deduction for age or wear. Mortgagee clause The policy condition that gives the lender its own right to be paid for dwelling losses and protects that right even when the owner's claim is denied. Supplemental claim A request for more money on a loss you already reported, usually for damage found or costs incurred after the first estimate was written.

Related guides

Claim checks, holdbacks and when the money arrives Why a home claim pays in stages: depreciation holdbacks, mortgage-endorsed checks, what the ISO form says about timing, and how to plan cash for repairs. How long insurers have to pay a home claim There is no national deadline to pay a home claim. How the ISO 60-day clock, the NAIC model and state rules in TX, CA, FL, LA and NY set the real deadlines. Why your mortgage company is on the claim check Your lender is named on dwelling claim checks because it has a financial stake in the house. How the mortgage clause works, and how to get funds released. Recoverable depreciation: getting the rest of your claim Insurers hold back depreciation until repairs are done. How to collect it, the time limits that apply, and which depreciation never comes back. Supplemental claims and reopening a closed claim How to ask for more money after a claim is paid or closed: supplements vs reopened claims, deadlines that keep running, release traps and a sample request. Replacement cost vs actual cash value: why it matters Replacement cost pays to repair or rebuild at today's prices; actual cash value subtracts depreciation first. How each settles your house, roof and belongings.

Related tools

Depreciation calculator: actual cash value vs replacement cost Estimate what belongings are worth after depreciation, what an actual cash value check would be, and how much a replacement cost policy pays back later.