Why did insurance withhold depreciation on my roof claim?

There are two reasons that the insurance companies hold some money back.

First reason: To make sure that you get the work done. Past experience has shown them that, if they give the customer all the money up front, many people end up spending it on something else.

Second Reason: They want to make sure that you pay your full deductible. The insurance companies reason that, if you are given all the money to begin with, many people would naturally try to find a contractor who would perform the job for the dollar amount in hand.

By holding this amount, they can adjust the amount of the final payout based on the roofing contractor’s invoice, thus assuring that the customer does pay the deductible.