As written by the Outer Banks Sentinel:

“The NFIP flood adjusters’ manual states that primary residences are not to be depreciated but almost all of the proofs of loss examined by the Sentinel contained depreciation of things such as floors, stairs, doors, etc. That depreciation was noted as being “recoverable” if policy-holders spend that amount and then file a supplemental claim. Many of the amounts withheld were in excess of $10,000; some were several times that amount.

Many policy-holders said that without the withheld “recoverable depreciation” funds, they can not afford to complete their repairs.

On one proof of loss, a side-by-side refrigerator that had been purchased a year ago for $1200 was valued at $600 on the proof of loss. That amount was depreciated to $300 and then recoverable deprecation of 20 percent was applied resulting in a total pay out of $240.

Another common issue has been the coverage of heating and air units. Adjusters are allowing replacement of only one portion of the system, thus creating a situation where the new component is not compatible with the the other parts of the system, thus leaving the homeowner with no heat or air conditioning.”

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