Which term describes the recovery of payments after repairs are completed?

The term that describes the recovery of payments after repairs are completed is "Recoverable Depreciation." In the context of insurance claims, recoverable depreciation refers to the portion of the depreciation that is accounted for when determining the payout for a claim. Once the repairs are completed and substantiated with proper documentation, the insurer typically reimburses the insured for the depreciated cost that was initially withheld. This means that the insured is compensated for the complete value of the repairs, minus any depreciation applied before they were carried out.

This concept is critical in understanding the insurance claims process, particularly how depreciation affects initial payouts. It ensures that policyholders receive the total amount they are entitled to once they have fulfilled their obligation to repair the damaged property. By recognizing this part of the claims process, adjusters can effectively guide insured individuals through the necessary steps to recover their full expenses after satisfactory repairs have been made.